Innovative Approaches to Managing Longevity Risk in Asia: Lessons from the West

Abstract:     
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 modeling 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.

Number of Pages in PDF File: 27

Keywords: longevity risk, asia, managing longevity risk, longevity modeling, pension plans

JEL Classification: H55, I38, J14, J32, O17

working papers series