The traditional method of transferring longevity risk
is through insurance and reinsurance contracts.
Also, PICA assumed the longevity risk
for about USD1.
However, the report found that managing longevity risk
remains high on pension scheme agendas.
The report includes special discussions on the potential benefits of the PRC's efforts to link its bond market to the rest of the world - called the Bond Connect scheme - and a conceptual solution to cope with longevity risk
He also provides a number of risk management strategies, helping readers understand the dangers posed by longevity risk
and the sequence of returns.
He also worked on international deals, including a $28 billion reinsurance transaction covering longevity risk
from British Telecom pension scheme.
The Treasury department has also made it easier for individuals to protect against longevity risk
by investing in deferred annuities through 401(k) plans.
Life annuities are recognized as an important product that protects individuals against longevity risk
and investment risk in retirement.
Financial professionals use the term longevity risk
to describe this issue.
According to Giles, it was a corporate finance transaction to secure the plan's balance sheet from longevity risk
and therefore invisible to them.
Defined Benefit Solutions, part of our group retirement services business, completed a transfer of longevity risk
for CDN5 billion of pension plan liabilities from Bell Canada to Sun Life.
A new paper by the Brookings Institution, released today, explores longevity annuities and their role in helping consumers manage retirement risks including longevity risk