Top of the Morning: Women and health - Challenges and opportunities
The desk argues that addressing the gender health gap presents both a significant opportunity and a critical risk factor affecting women's financial well-being, as outlined in the recent UBS Women and Health Report. The report highlights that women spend 25% more of their lives in poor health, a statistic that underscores a broader societal oversight that could have implications for economic productivity and healthcare investments. Per the full note, the growing startup ecosystem addressing these health disparities signals an emerging market segment ripe for investment. As institutional investors increasingly prioritize ESG and health equity in their portfolios, this sector could see enhanced flows, aligning well with sustainable finance initiatives.
What the desk is arguing
The desk contends that the underserved female health sector offers unique investment opportunities while highlighting systemic issues that could inhibit economic participation. The UBS report underscores that women, who on average live longer than men, face approximately nine years struggling with conditions that are often neglected, suggesting that addressing this gap could enhance labor force participation and overall economic output.
Moreover, as awareness of women’s health issues continues to escalate, this may catalyze a shift in healthcare investment priorities. The proliferation of startup ventures aimed at tackling these health conditions illustrates the potential for robust market growth, which may draw considerable investment interest.
Where it sits in our coverage
Our consensus target for relevant currency pairs is not available at present as no specific currencies have emerged from the internal coverage data. However, emerging investments in health-related sectors could shape future policy and market dynamics significantly.
How other firms see it
While specific forecasts from other firms are not available in the internal coverage data, it is worth noting that firms aligning with sustainable investment trends are likely to hold positive views on sectors influenced by health equity discussions. Firms prioritizing ESG principles appear attractive within this framework. Observations regarding broader economic indicators, such as healthcare spending growth and labor market trends, could intersect with this narrative in upcoming reports.
What the calendar says
There are currently no scheduled high-impact events that would directly impact this narrative in the short term.
Key takeaways
01The gender health gap results in women spending 25% more of their lives in poor health, significantly impacting financial well-being.
02Investment in health-focused startups addressing women's health issues is surging, indicating a ripe market for institutional investors.
03As ESG considerations rise, sectors focusing on health equity may attract additional investment flows, affecting financial dynamics.
04The current lack of consensus targets suggests that investment strategies will need to adapt as new insights emerge.
Market implications
Watch for developments in health policy reforms or significant investment announcements in women-focused health startups, as these could provide insights into shifting investment flows towards the sector. Institutional investors may increasingly seek exposure to these emerging opportunities reflecting broader societal needs.
Risks to this view
The primary risk to this narrative includes potential setbacks in policy changes related to health equity or a slowdown in the startup ecosystem's growth, which could derail investment flows. Additionally, macroeconomic factors affecting overall healthcare spending could significantly impact related sectors.
Hi everyone, Dan Cassidy here. Welcome back to Top of the Morning on the UBS Conversations podcast channel. For today, we will focus on the recently released UBS Women and Health Report, Challenges and Opportunities.
Joining me here for the conversation today, glad to welcome the publication's lead author, Mariana Mamou, Head of Advice Beyond Investing with the UBS Chief Investment Office at UBS Global Wealth Management. Now, the publication examines the gender health gap, what it is, how it affects women's lives and financial well-being, and CIO also highlights the rapid growth over the last few years in awareness around women's health and in the startup scene of companies trying to provide solutions. So, with that, Mariana, thank you very much for dropping by Top of the Morning today to spend some time with our listeners and our clients.
I believe this is the first time you are joining us here on Top of the Morning, so really nice to have you with us. Welcome. Thank you.
Very excited to be here. So, with that, I know there's a lot to talk about within the report, so let's dive right in. Perhaps begin by providing our listeners a bit of context.
Can you define for them what the gender health gap is and how it has impacted women? Yes, of course. Women live longer than men on average, but they spend 25% more of their lives in poor health.
That is approximately nine years of life spent struggling with conditions that are often invisible, untreated, or misunderstood. Often people consider female health to focus on conditions that are unique to women, and indeed, there are many conditions unique to women, such as menopause, endometriosis, women-specific oncology, and fertility. But there are also conditions that affect them disproportionately, such as autoimmune diseases, osteoporosis, or depression, as well as those that affect them differently, like cardiovascular diseases and diabetes.
For much of the 20th century, women were often left out of clinical trials, mainly due to concerns about pregnancy risks and hormonal cycles. This began to change in the early 90s when new policies required the inclusion of women and minorities in clinical trials. But while inclusion has improved, gaps remain.
In addition to underrepresentation in clinical trials, female health is underrepresented also in research. For example, in a report by Nature, only 5% of global research funding goes to female health, while just 1% goes to non-cancer, female-specific conditions. These data and research discrepancies result in big limitations in terms of what we know and understand about how best to treat women.
As a result, women face barriers to care and they experience diagnostic delays that affect their physical and mental well-being. For example, women are diagnosed later than men for over 700 diseases. They wait 2.5 years longer for a cancer diagnosis, 4.5 years longer for diabetes.
They are 7 times more likely than men to have a heart condition misdiagnosed or be discharged during a heart attack. This is why it is very important to look at the gender health gap and see what we can do to reduce it. With that, if we move over more specifically now to women's financial well-being, as this was covered in the report, Mariana, what has the scope of impact consisted of there?
Yes, there are three factors that come to play. So there are challenges in terms of wealth accumulation. There are higher costs that also affect the savings and investments that women can have in order to build a good retirement portfolio.
And there is the fact that women live longer, so they need to make their savings last longer. Now according to a McKinsey Health Institute report, nearly half of the health burden falls on women of working age. So this means that the health conditions will impact their productivity and career progression and therefore this means smaller pensions and less wealth available for financial well-being.
An additional critical consideration regarding pension allocation and savings for retirement is that women face a higher probability of retiring early and unexpectedly. And the top reason for that is related to health. Menopause is a period in which many women, while at their peak of their careers, are forced to reduce employment or take time off.
And for many women, coming back to work after some time off may prove challenging and as a result may be forced into an early retirement. In a U.S. survey of women workers aged 40 to 55, nearly a third of responders said they'd think about shifting to part-time from full-time work, while 22% said they'd consider retiring early. Now also, women are five times more likely to retire early when they take care of an ill husband.
And unpaid care is a significant burden for women as they do over three times more than men globally. So caregiving responsibilities also limit time and focus and they have an ability to undermine their financial stability. So in addition to these challenges in terms of accumulating wealth, women also face a greater burden from higher medical expenses.
In the U.S., women spend nearly 30% more out of pocket on prescriptions and medical treatment than men. And the gap is most pronounced for women aged 18 to 44 due to reproductive health expenses. Women are also spending significantly more on mental health treatments with expenditures on depression and anxiety medications that are more than double those of men.
And during menopause, health care costs spike even more. Women spend over $13 billion annually on treating their menopause symptoms. So all these costs affect also their ability to save and invest their assets.
And as I mentioned earlier, they live longer, so their investments need to stretch and support them for longer. So it's very important to raise awareness and make sure that women have a solid financial plan and that they invest appropriately so that they ensure they have a high probability of meeting all of their lifetime goals. Quite a few considerations there when it comes to financial well-being.
If we turn to technology for a few moments, I found this interesting within the report, Femtech. So can you provide our listeners with a bit of background in terms of what Femtech is and the kinds of services or products provided and offered by Femtech companies? Femtech, or female technology, refers to companies that provide a range of products or services focused on women's health, which includes women-specific conditions such as menopause, reproductive and menstrual health, pregnancy and childbirth, as well as the conditions that affect women disproportionately or differently.
Now while Femtech is technically a subset of women's health, it has been used as synonymous with women's health solutions. If we focus back in on the gender health gap, why is it so important to close this gap? It is not just a health priority or about fairness, but it's an economic and social necessity.
Poor health can keep women out of the workforce, it can contribute to long-term sick leave, and it can limit economic growth. Closing the women's health gap could yield significant returns, up to seven healthy days per woman per year, and as much as $1 trillion in annual global GDP by 2040, as per a report by McKinsey Health Institute. And ultimately, advancing health care for women not only benefits women directly, but also drives innovation that elevates the quality of care for everybody.
So as we begin to close out our conversation for today, Mariana, you've left our listeners, our clients, with a lot to think about in terms of timing for taking action on these matters. Why is now the time? Well, over the last year, there has been increasing awareness around the lack of understanding female health, and now there is increased willingness to openly discuss and speak up on the health conditions and challenges women face.
And demographic shifts resulting in aging populations will further fuel demand for gender-specific health issues like menopause and osteoporosis. Millennial women will be a driving force demanding and expecting better solutions. And let's not forget that women are responsible for 80% of household health care decisions.
And as the Great Wealth Transfer takes place, women will have more wealth in their hands, allowing them to spend more, but also invest themselves in solutions that they care for, such as health for women. Well, Mariana, very nice speaking with you today to highlight the report. Again, UBS Women and Health Report Challenges and Opportunities.
I do want to point out to our listeners, our clients, that this report is now available on the UBS website, ubs.com slash women dash invest. And for clients of UBS, please be sure to reach out to your UBS financial advisor if you would like to receive a copy of the report directly. Though again today, we have been joined by Mariana Mamou, Head of Advice Beyond Investing with the UBS Chief Investment Office here at UBS Global Wealth Management.
Thank you again, Mariana. Nice speaking with you today. Thank you for having me.
It was a pleasure. Thank you for tuning in. Be sure to visit ubs.com slash studios to view the entire UBS studios suite of podcast channels along with our video offerings, such as UBS Trending.
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