An end to the beginning
It is axiomatic that managing longevity risk is a long-term affair. Assuming that a one-year increase in life expectancy adds 3% to a pension scheme's liabilities it would take an increase of 10 years in a 12-month period to come close to the hit schemes' funding ratios experienced in 2008 when both equity values and discount rates plunged off a cliff.
And the possibility of an improvement on that scale occurring so quickly is infinitely more remote than a repeat of the recent financial crisis,
More on Insurance
Most read on Risk.net
- Brexit novations ‘on hold’ to gain reg relief
- Banks hope final FRTB rules will ease NMRF burden
- Functional programming reaches for stardom in finance
- People moves: Bank of America names new Apac chiefs, Wilkinson leaves LGIM, Lloyds loses Coutte, and more
- Mifid data publishers drag feet on Esma guidelines
Back to Top