Longevity Risk from the Perspective of the ILS Markets*
This paper compares and contrasts the evolution of the longevity risk transfer market with the development of the Catastrophe Bond Market, more formally known as the Insurance Linked Securities (ILS) Market. The ILS market is small; the longevity market is potentially enormous. The ILS market has been around for some 15 years; the Longevity market less than 5 years. The ILS market has had a heterogeneous approach to loss measures; the longevity market has striven for homogeneity. The ILS market has used security, i.e. bond, structures; the longevity market uses derivative, i.e. swap, structures. Nearly all ILS transactions cover “event” risk; nearly all longevity structures are “aggregate”. The paper reflects on these and other differences and speculates on the nature of the two approaches.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 36 (2011)
Issue (Month): 4 (October)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
Postal:Route de Malagnou 53, CH - 1208 Geneva
Phone: +41-22 707 66 00
Fax: +41-22 736 75 36
Web page: https://www.genevaassociation.org/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/finance/journal/41288/PS2|
When requesting a correction, please mention this item's handle: RePEc:pal:gpprii:v:36:y:2011:i:4:p:501-515. See general 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: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.