Longevity Risk

A heightened awareness of the aging population means that all parties have to closely track and monitor their longevity assumptions and developments. This ensures appropriate longevity bases are used in pricing and reserving for longevity risk.

It has also spurred a trend to de-risk, bringing new entrants to the bulk annuity and pension buy-out market, including insurance and reinsurance companies and investment banks, as well as increasing the appetite for longevity risk only deals such as longevity swaps. Read on for a discussion of these issues, as extracted from the book Longevity Risk.