Financial Innovation and the Hedging of Longevity Risk
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Michael Sherris
Longevity risk is one of the remaining frontiers challenging modern financial markets and financial engineering. Financial innovation has yet to successfully master this very significant risk facing many countries internationally. For well over a hundred years this risk has been the domain of life insurance companies, reinsurance companies and actuaries. The aging population around the world drives the need for new products for managing longevity risk and new markets for hedging this risk. We consider how financial markets and financial product innovations can ideally be used to hedge longevity risk and also consider lessons from the insurance linked securities market that could be used to successfully fund this risk in financial markets.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
Artikel in diesem Heft
- Featured Article
- Longevity Risk and Capital Markets: The 2007-2008 Update
- The Birth of the Life Market
- Mortality Declines, Longevity Risk and Aging
- Financial Innovation and the Hedging of Longevity Risk
- Hedging Pension Longevity Risk: Practical Capital Markets Solutions
- Assessing Investment and Longevity Risks within Immediate Annuities
- Optimal Retirement Asset Decumulation Strategies: The Impact of Housing Wealth
- An Empirical Study of Mortality Models in Taiwan
- Pricing and Implementation of Longevity Bonds in Taiwan
- The Volatility of Mortality
Artikel in diesem Heft
- Featured Article
- Longevity Risk and Capital Markets: The 2007-2008 Update
- The Birth of the Life Market
- Mortality Declines, Longevity Risk and Aging
- Financial Innovation and the Hedging of Longevity Risk
- Hedging Pension Longevity Risk: Practical Capital Markets Solutions
- Assessing Investment and Longevity Risks within Immediate Annuities
- Optimal Retirement Asset Decumulation Strategies: The Impact of Housing Wealth
- An Empirical Study of Mortality Models in Taiwan
- Pricing and Implementation of Longevity Bonds in Taiwan
- The Volatility of Mortality
