Swiss Re Publishes a Report on the Growing Challenges Associated with Longevity Risk

The reinsurance company Swiss Re recently published a comprehensive report that highlights the risks many societies face as a result of ageing populations and increased life expectancies.

According the Swiss Re, underestimating life expectancy by just 1 year can add 5 percent to a pension plan's liabilities.

The report indicates that there are $17 trillion in global pension plan assets exposed to longevity risk.

High level recommendations include:

  • Ensuring adequate awareness of and reserving for longevity risk by pension plan sponsors.
  • Enhancing longevity risk transfer capacity in the insurance and reinsurance industry.
  • Policy and regulatory modifications that realistically account for ageing populations.
  • Development of capitla market solutions that address longevity risk.

Source: Swiss Re

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