Longevity risk is the possibility that current assessments of life expectancy are wrong. It is a growing issue for annuity writers and providers of pension finance and a developing asset class for hedge fund managers.
Longevity risk exists because of the increasing life expectancy trends among policyholders and pensioners. Even a small change in life expectancies can create severe solvency issues for pension plans and insurance companies. This can result in payout levels that are higher than what
The week on Risk.net, December 2–8, 2017Receive this by email