pension

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.

Hymans Robertson LLP, the pensions actuarial consultancy, has predicted a buoyant pension scheme risk transfer market for the 4th quarter of 2010 and into 2011. In a report published last week Hymans Robertson they said they expect to see a quarter of FTSE 100 companies enter into a material pension scheme risk transfer deal by […]

The results of a survey undertaken by Lucida, an insurance company focused on annuity and longevity risk business, seem to show that pension funds worries about longevity risks are decreasing and their appetite to use longevity swaps to transfer their risks is lower than last year.

The Pension Protection Fund (PPF), which takes on the pension liabilities of companies which fold has formed a partnership with Club Vita, a provider of analytical services to help pension funds understand and manage their longevity risk.

As the market for risk transfer and hedging of pension liabilities grows this year, news comes from Aon that the liabilities and obligations of UK companies to their pension funds have hit all time highs.

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 […]

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.

Pension fund sponsors and trustees don’t appear to be managing the longevity risks associated with their schemes on their own says MetLife Assurance. Despite the fact that there are estimated to be £1trillion of defined benefit liabilities in existence MetLife says that longevity is not being managed properly.