Innovative Approaches to Managing Longevity Risk in Asia : Lessons from the West
Abstractï»¿This paper discusses what is longevity risk, why it is important, approaches used by the West to manage longevity risk and what lessons can be learnt by Asian countries from the experiences of the West. Increasing and uncertain longevity has emerged as a key risk affecting individuals, pension plans, insurers and governments in both the developed and emerging world. I discuss progress in the field of longevity modelling and the merits as well as drawbacks of these models. In Western countries, attempts have been made by capital market and governments to deal with longevity risk, but the availability of solutions remain limited. Further developments should focus on creating a set of instruments that are effective, economically affordable, and transparently priced. It is important to understand, measure, and manage longevity risk. Moreover, further pension reforms are needed to address the root of the problem. For Asian countries, the experience of the West provides ample guidance in formulating their pension plans and promoting capital market developments to avoid the same predicament the West is now struggling with. Simple cost-effective solutions linking retirement ages to longevity, efficiently engaging women and older workers in the work force for longer, education and technology driven flexible work practices, along with preventing productive human capital outflows ought to be considered seriously in Asia.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Finance Working Papers with number 23296.
Date of creation: Apr 2012
Date of revision:
Contact details of provider:
Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org
More information through EDIRC
Longevity Risk; Asia; pension reforms; Capital Markets;
Find related papers by JEL classification:
- G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
- G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong).
If references are entirely missing, you can add them using this form.