Integrated and expanded welfare models are a challenge for actuaries
by Giampaolo Crenca
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Giampaolo Crenca is President of the Italian Society of Actuaries (ISOA). | ||
The concept of welfare is usually divided into three ‘pillars’. The first pillar incorporates all public policies carried out by a state that have the purpose of providing for assistance and the wellbeing of its people by satisfying their essential needs; this is referred to as a whole as the welfare state. As changing demographic and economic factors severely impacted the welfare state in many European countries, two extra pillars have emerged. The second pillar of welfare refers to what is collectively disbursed, for example through corporate agreements. This corporate welfare functions as an additional support to the welfare state. The third pillar is individual welfare, wherein people autonomously seek out solutions for integrating the other named types of welfare.
Disclaimer:
This article represents the opinion of the author, and not necessarily the opinion of the AAE.
This article was published in The European Actuary No. 40 – December 2024
