Continuing demand for longevity risk insurance products perseveres throughout volatility
Amy Kessler, Professor Andrew Cairns, Professor David Blake and Marsha Kessler look at how schemes can make longevity assumptions post-Covid
Pension schemes and life insurers should be prepared for a modest change to their assumptions for mortality rates in the post-Covid-19 world, an academic study suggests.
Defined benefit (DB) schemes should act now to insure members’ benefits before an “anomaly” in the markets is corrected, Prudential Retirement has said.
The HSBC Bank (UK) Pension Scheme has hedged its longevity risk with Prudential Insurance Company of America (PICA) in the second-largest ever deal of its type.
Prudential Retirement has completed around $2.6bn (£2bn) of reinsurance contracts for UK pension scheme longevity risk since the start of the year, it has disclosed.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.
Prudential Insurance Company of America (PICA) has agreed to reinsure around $1.2bn (£900m) of Pension Insurance Corporation's (PIC) longevity risk.
The Continuous Mortality Investigation's (CMI's) longevity model is a useful projection tool for schemes but, as Amy Kessler explains, it has key limitations.