Articles - LLMA goes live with Longevity Indices


Longevity markets take another step towards maturity, as risk becomes tradeable

 The Life and Longevity Markets Association (‘LLMA’) is pleased to announce that it has today launched its own set of four longevity indices. The LLMA Longevity Indices will be used as a global reference for the transfer of longevity risk from hedgers to investors and other counterparties.

 The LLMA Indices will act as a robust reference for longevity and mortality contracts between counterparties. The four Indices cover England and Wales, Germany, the Netherlands and the USA; and can be accessed on the LLMA website (www.llma.org). The Indices will be launched on the Bloomberg platform later this year.

 The LLMA's various member firms have between them seen most of the major longevity transactions undertaken to date, helping ensure that the Indices have a consensus acceptance.

 Daniel Ryan, Chairman of the LLMA Index Committee (and Head of Research & Development at Swiss Re) commented: “This is a major milestone in the LLMA's work to support the development of a traded market in longevity and mortality-related risk. Global longevity exposures are measured in trillions of dollars, far in excess of the capacity that exists amongst insurers and reinsurers to provide longevity protection to counterparties such as pension plans. Developing an avenue through which investors can take exposure to longevity will offer additional capacity to the industry.”

 “The LLMA’s members have been working for some years now to construct capital market instruments to package longevity risk into tradable portions and to provide a benchmark. This collaborative industry initiative addresses a fundamental need – that of providing trading for the transfer of insurance risk – which is now supported by the LLMA Longevity Index.”
  

Back to Index


Similar News to this Story

A step change is expected for DB pension scheme funding
Mike Smedley, Pensions Partner at KPMG in the UK discusses some of the changes expected for DB pension scheme funding in 2019
What does the ideal actuarial consultant look like
We recently published our Navigating Change report, which looks at the changing role of the actuarial consultant. One issue that struck me was the w
The Ecosystem of Trust
Insurance is generally regarded as a background product, one of the necessities of life that most people have but do not regard as very exciting when

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.