New Reply

Post a Reply

Thread: Do you know longevity index?

Title: (100 characters at most)

Content: ( 3,000 characters at most, please )

You can add emoticons below to your post by clicking them.

[quote=YVONNE,278321]Source: FT.

According to FT, Deutsche Borse has gathered first hand data from the undertaker to find out when people will die. Analyzing the data and official mortality statistics, they work out new Xpect data and index package to help insurers and pension funds calculate their longevity and mortality risks. For pension scheme, it is a big risk if they don't know people's life span because they have to pay pensions to their members in the rest of their lives. At present, this kind of longevity index can help to control the risk.

"Last year, JP Morgan launched the LifeMetrics an index that provides annual data for England and Wales. Credit Suisse also made an American longevity index in 2006.  Last month, a UK insurance company Lucida announced the first longevity swap transaction based on the LifeMetrics index, agreeing to pay JPMorgan an income stream based on current  longevity expectations in return for JPMorgan's  promise to pay an income stream based on how long people actually live for."

However, the commentators coment that it is an emerging market but very underdeveloped. As an investor, will you invest in this emerging market? What do you think of these longevity indices? 
[/quote]

characters left

Name:

Get a new code