longevity securitization

Reinsurer Swiss Re has renewed calls for a liquid market for longevity risk transfer to be created in their latest publication. With recent estimates suggesting that the average pension fund is already underfunded by 24%, life expectancy increasing globally and over $20 trillion of defined benefit assets exposed to longevity risk, Swiss Re insists that […]

You’d be forgiven for thinking that the insurance-linked securities market was only about catastrophe risk securitization if you looked at our Deal Directory and in recent months it has been. However, according to panelists at ratings agency Standard & Poor’s recent Insurance 2012 Conference there’s life in life insurance-linked securitization yet, particularly in the securitization […]

The Organisation for Economic Co-operation and Development (OECD) has published a 230 page report looking at various issues affecting the pension markets and highlighting areas that need reforming in order for pension plans to meet their obligations and better serve their members. One of the issues covered in the bumper report is longevity risk and […]

The recent report on longevity risk from the IMF highlighted that the exposure is likely being severely underestimated and that globally longevity risk amounts to tens of trillions of dollars of exposure which is not currently being managed. The amount of longevity exposure in pension funds around the world is significantly larger than the capacity […]

With an ageing population, slowing birth rate and an increasing rise in life expectancy as well as impending accounting standards which will encourage the need to show their capital adequacy, Japanese insurers and pension schemes are expected to face growing longevity risks in the coming years, according to this article in Life & Pension Risk […]

As well as the roundtable discussion on catastrophe bonds which we covered earlier here, Standard & Poor’s also held a roundtable discussion on the topic of longevity securitization recently. Again the full publication of the discussion can be downloaded by subscribers to S&P’s Global Credit Portal or purchased from S&P here. With the growing longevity […]

Proponents of longevity risk transfer through instruments such as securitization via a catastrophe bond type structure (in a similar manner to Swiss Re’s Kortis Capital deal), or swaps, derivatives and hedging mechanisms, will be pleased to learn that this has now become a topic of discussion in China.