Future of Pensions and Insurance at Risk Due to Longevity Uncertainty
The article discusses the uncertainty surrounding future changes in mortality rates, known as longevity risk. It reviews different ways to predict future mortality, such as the Lee and Carter approach. The importance of longevity risk for the financial stability of pension and life insurance portfolios is highlighted. The article also explores methods for managing longevity risk, including through securitization and redesigning pension and insurance products.