longevity risk

Towers Watson, the global professional services company, has published its five predictions for the pension market in 2011. Their fourth prediction is for an increase in longevity risk hedging among pension schemes and they state that improved access to tools which allow pension schemes to evaluate their longevity risk exposure should enable more schemes to […]

The UK governments Department for Work and Pensions has released some data showing their latest projections for how many citizens living in the UK will make it to age 100 and how many centenarians there will be in the future. The stark figures show longevity increasing rapidly and should serve as a warning to pension […]

Swiss Re has announced the completion of the first ever longevity trend catastrophe bond with the completion of Kortis Capital Ltd. The deal transfers $50m of longevity trend risk over to the capital markets for Swiss Re using the familiar structure more commonly utilised for natural catastrophe risk.

The Organisation for Economic Co-operation and Development (OECD) is to begin a research project looking into longevity risk in January. One of the aims of the research (according to Global Pensions) is to look into the possibility of establishing government issued life expectancy indices.

Insurer Aviva has joined the Life & Longevity Markets Association (LLMA) taking the number of members of the still new association up to eleven. The LLMA is a not for profit association dedicated to promoting liquidity in the traded longevity and mortality risk markets.

Metlife has published a study undertaken by its U.S. and UK businesses which compare the current state of pension fund risk management and pension fund sponsor and trustee attitudes to risk between the U.S. and the UK.

The Chief Risk Officers (CRO) Forum, a professional group of chief risk officers and risk managers from large insurance and reinsurance companies, has published a position paper which advocates the capital markets becoming an active player in longevity risk transfer.

Pension funds are facing up to their increasing longevity risks by seeking new ways to transfer their risks to other parties, the capital markets or into investments. GlaxoSmithKline are the latest to enter into a deal which sees them enter into bulk annuity contracts with Prudential to pass on the risks for 15% of their […]

We wrote yesterday about the changes to longevity expectations in the UK according to an actuarial study. Now it seems the Dutch have completed a similar study into their populations life expectancy and concluded the same: that longevity is increasing and pensions funds and insurers need to learn to deal with that risk.

Pension provision costs are set to rise again in the UK as longevity expectations have increased again according to the Institute of Actuaries. The institute has published new mortality expectation tables as part of their Continuous Mortality Investigation and the data shows life expectancy of an average pension scheme member increasing ahead of expectations.