longevity risk

Concerted action in the form of public-private partnerships is required from governments, insurers and pension providers if they are to tackle the risk of increased life expectancy. In its new report ‘A short guide to longer lives: Longevity funding issues and potential solutions’ published today, Swiss Re warns that time is running out for effective […]

The Life & Longevity Markets Association (LLMA) has proposed a standardises framework for designing, building and producing longevity indices. The proposal aims to provide the longevity risk transfer market with a set of standards to facilitate easier longevity risk transfer transactions and increase transparency.

A report released by consulting firm Hymans Robertson suggests that pension fund longevity risk transfer is growing fast and within the next two years will become a norm for large companies looking to derisk their pension fund strategy. To date, £6.3b of pension risk transfer deals have been struck in 2010 and given the current […]

Longevity risk and the assumptions surrounding the age that pensioners will live to are big news today. The market in longevity risk transfer is growing rapidly this year with some very large deals taking place and new entrants beginning to show an interest in hedging their pension longevity exposure.

Two new high profile members have signed up to the Life & Longevity Markets Association. Morgan Stanley and UBS have both joined as full members of the LLMA bringing their membership up to ten high profile financial organisations (AXA, Deutsche Bank, J.P. Morgan, Legal & General, Pension Corporation, Prudential PLC, RBS, Swiss Re, Morgan Stanley […]

Risk Management Solutions (RMS) recently announced the launch of a new risk model which aims to quantify longevity risk using a medical based approach and taking into account changing mortality phases. A model such as this should see high demand from anyone (pension funds, insurers) looking to hedge the risk of pensioners living longer.

Life & Pension Risk magazine are reporting here that Munich Re are considering branching out into the longevity risk market. They say that they are working on creating tailor made solutions for longevity. Munich Re are said to be cautious about becoming over exposed to longevity risks and are still discussing internally whether to hold […]

The UK’s Financial Services Authority has voiced it’s concerns over the potential for mis-selling in the life settlements sector. Their concern lies mainly in the fact that these are complex products with many risk factors to be taken into consideration. The FSAS expects providers to be clear about their target investors so as not to […]

Two more major companies are planning to transfer some of their pension fund risks through longevity swaps in the coming weeks. Longevity risk transfer is becoming a really popular and much more accepted way to take some of the risk out of your pension scheme and enable you to plan your cash flow better and […]

The market for trading and securitization of longevity risks has never really taken off as much as we initially thought it would. Most market participants have been waiting for capital to flood in as companies and pension fund managers discovered how easily they could hedge the risk of longevity amongst the members of pension schemes. […]