Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • December 2017
12

Investors warned of antibiotic resistance threat to portfolios

Open-access content Friday 15th December 2017 — updated 5.50pm, Wednesday 29th April 2020

Antibiotic resistance is one of the world’s most rapidly emerging public health threats and could result in $100trn (£74trn) of lost output between now and 2050.

2

A new report by the Farm Animal Investment Risk and Return (FAIRR) initiative warns the phenomenon is already responsible for around 700,000 deaths every year, costing Europe $1.5bn in healthcare and productivity expenses.

It argues that multi-drug resistant infections that require more expensive antibiotics will increase treatment costs, while insurance companies could face higher claims as infections become harder to treat.

In response, it urges investors to understand the value at risk to portfolios, arguing that the market cannot afford to see key sectors of the economy such as big pharma and farms infected by antibiotic risk.

"Combatting the rise of antibiotic resistant bacteria is a global challenge and investors need to play their part," Calvert Research and Management CEO, John Streur, said.

"It's important that shareholders work with the food companies they own to ensure companies both understand the risks posed to our health and our wealth, and take action to reduce antibiotics usage."

The FAIRR report highlights how the livestock sector is a key area in need of intervention, with the majority of all antibiotics produced given to farmed animals rather than humans.

It shows that 70% of antibiotics go to the animal faming industry in the EU, while the figure rises to 75% in the US.

As a result, stricter regulation for livestock producers has been introduced in the EU and US, with more expected to come, leaving the business models of a wide range of companies across the food supply chain at risk.

However, 74 institutional investors with more than $2.4trn of assets under management have now backed calls by the FAIRR for collaborative engagement on the issue.

The report argues that investors increasingly acknowledge that non-therapeutic use of antibiotics in agriculture has the potential to impact investment risks and returns, and that dialogue has been crucial to recognising this.

"If left unchecked, antibiotics resistance can significantly disrupt the world we live in today. It's a frightening scenario which can affect the lives of our clients, regardless of age location or economic status." Aegon engagement manager, Natalie Beinisch, said:

"Global institutional investors need to take a proactive approach to understanding this emerging global risk."


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our December 2017 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Bulk annuity market set for record year in 2018

The UK bulk annuity market will experience a bumper year in 2018, according to risk management firm Aon, with transactions predicted to reach £30bn for the first time.
Friday 15th December 2017
Open-access content
2

UK facing 'midlife savings crisis'

The UK’s ageing workforce is facing a midlife savings crisis, with one-fifth of people in their fifties and sixties currently unable to put aside anything for retirement.
Friday 15th December 2017
Open-access content
2

Care home 'funding lottery' identified across UK

UK pensioners are being forced to haggle for social care due to a huge variation in the levels of funding provided by councils, according to research by Royal London.
Friday 15th December 2017
Open-access content
2

Technology predicted to be top disruptor to investors over next decade

Advances in technology are expected to have the greatest impact on investment institutions over the next ten years, creating major opportunities and threats.
Thursday 14th December 2017
Open-access content
2

Vast majority of insurers still unprepared for IFRS 17

The overwhelming majority of insurers worldwide are still in the early stages of assessing the impact of IFRS 17, with most struggling to find the talent needed to implement the accounting standard.
Wednesday 13th December 2017
Open-access content
2

Worldwide support for climate-related financial disclosures grows

Financial firms responsible for assets of over $81.7trn (£61.3trn) have publicaly committed to support the Task Force on Climate-related Financial Disclosures (TCFD).
Tuesday 12th December 2017
Open-access content
Filed in
12
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ