NETHERLANDS - JPMorgan has expanded its LifeMetrics longevity index coverage to include longevity and mortality rates in the Netherlands.
The index was created for pension fund investors to measure and manage both mortality and longevity exposure, initially creating separate indices for mortality rates in the US, England and Wales.
The latest launch is an index to help Dutch pension plans hedge the expected longevity of their beneficiaries, which has been measured specifically for that country.
Guy Coughlan, managing director and global head of pension asset liability management, JPMorgan, told Global Pensions: “Longevity and mortality are global problems but manifest in different ways with different parties shouldering the risk depending on the market.”
Coughlan continued: “We are evaluating other countries in terms of the size of the risk faced and whether the market would be receptive to this product, but we have no definite targets yet.”
He added that the take up of the index by pension funds had been different even within the separate markets.
Consultants had often been an important link in the education of pension fund trustees about the benefits of longevity hedging, Coughlan added.
The LifeMetrics platform has been developed with Watson Wyatt and the Pensions Institute at Cass Business School.
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