The new Life Market

David Blake, Andrew Cairns, Guy Coughlan, Kevin Dowd, Richard MacMinn

Research output: Contribution to journalArticle

44 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)501-558
Number of pages59
JournalJournal of Risk and Insurance
Volume80
Issue number3
Early online date20 Jun 2013
DOIs
Publication statusPublished - Sep 2013

Keywords

  • longevity risk
  • life market
  • securitization
  • capital markets
  • risk transfer

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