The longevity paper finds that increased life expectancy will challenge society to provide adequate income to all individuals through old age.
Consequently, demand for longevity risk mitigation solutions is growing, and life insurers should play an important role. However, their current capacity to take longevity risk onto their balance sheets is small relative to global longevity risk exposure. Developing solutions to transfer longevity risk to the capital markets can help. All stakeholders will benefit from better awareness of the risk, access to reliable population data to help model and quantify the risk, and regulations which promote a rigorous risk-based capital framework for both insurers and defined benefit pension funds.
