B2 - Evolving the longevity risk transfer market
Financial instruments for hedging interest rates and inflation are common, easily tradable and used to great effect by insurers and pension plans in their risk management frameworks.
However, the current options for hedging longevity risk are more limited with no liquid and efficient market for trading.
In this session we will explore technological and actuarial innovations in longevity risk management that will open up the longevity risk market, develop new and efficient hedging options an create a wide array of new opportunities.
Attendees will learn about:
- A longevity risk market update including: the emerging capacity constraints in the longevity risk market; the explosion in new reinsurance entities looking to off-load longevity risk; the creation of the first digital longevity risk market place
- Methods for defining and quantifying different types of longevity risk Differences in longevity risk between different populations
- How best to create hedging products that minimize basis risk for different underlying populations
- New product designs for hedging specific types of longevity risk (including practical examples for new direct to pension plan products and back book management)
- How the wide adoption of such products can create a liquid and efficient market for longevity risk Speaker: Steven Baxter, Club Vita, Monique Groen, VB Risk Advisory and David Schrager, Longitude Exchange