Swiss Re: pharmaceutical and care-home sectors could provide capacity for longevity swaps

Swiss Re: pharmaceutical and care-home sectors could provide capacity for longevity swaps

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The pharmaceutical and care-home industries could be suitable counterparties for longevity swaps, Swiss Re has suggested.

With concerns over whether reinsurers can provide sufficient long-term capacity for longevity risks, Swiss Re argues that these sectors could provide a “natural hedge”.

Daniel Ryan, head of life and health research at Swiss Re, suggests the nature of both industries means they could benefit from increasing longevity, making them ideal counterparties for longevity swap deals.