Abstract
The huge economic significance of longevity risk for corporations, governments, and individuals has begun to be recognized and quantified. By virtue of its size and prevalence, longevity risk is the most significant life-related risk exposure in financial terms and poses a potential threat to the whole system of retirement income provision. This article reviews the birth and
development of the Life Market, the new market related to the transfer of
longevity and mortality risks.We note that the emergence of a traded market
in longevity-linked capital market instruments could act as a catalyst to help
facilitate the development of annuity markets both in the developed and the
developing world and protect the long-term viability of retirement income
provision globally.
development of the Life Market, the new market related to the transfer of
longevity and mortality risks.We note that the emergence of a traded market
in longevity-linked capital market instruments could act as a catalyst to help
facilitate the development of annuity markets both in the developed and the
developing world and protect the long-term viability of retirement income
provision globally.
| Original language | English |
|---|---|
| Pages (from-to) | 501-558 |
| Number of pages | 59 |
| Journal | Journal of Risk and Insurance |
| Volume | 80 |
| Issue number | 3 |
| Early online date | 20 Jun 2013 |
| DOIs | |
| Publication status | Published - Sept 2013 |
Keywords
- longevity risk
- life market
- securitization
- capital markets
- risk transfer