Asset Managers to Provide Capacity in U.K. Longevity Risk Market
The United Kingdom has what is arguably the most sophisticated market in the world for financing longevity risk. The market for pension buyouts is developing and the demand among pension sponsors to off-load longevity risk is srtong. The issue is that there is a relative lack of capacity or ability to meet the demand. Reinsurers are active in the buyout market but the capacity is limited, and the longevity derivatives markets are relatively illiquid when compared to more established derivatives...
