ERM-331-17: Quantifying the Mortality – Longevity Offset


Reading Source: ERM-331-17 Study Note

Topics Covered in this Reading:

  • Introduction
  • Life Insurance and Annuities Create Offsetting Risks
  • However, Quantifying the Mortality-Longevity Offset is Complex
  • The Solution: A Structural Model of the Drivers of Mortality Improvement
  • Model Results: The Mortality-Longevity Offset is Significant and Variable
  • Adding Longevity Risk Can Reduce Mortality Risk Trend
  • The Logical Conclusion: Longevity Risk Finds Offsetting Mortality Risk