Managing longevity risk: key figures for solvency
The increase in life expectancy influences the risk structure of life insurers. The precise measurement of this development is a key prerequisite for calculating an adequate equity base in order to cover risks and absorb losses. The previous standard models (Lee-Carter) are based on assumptions for the years 1956 to 2020, which no longer match the current data. Empirical data from countries with high life expectancy show a structural change. In Germany, Sweden and the Netherlands, a significant slowdown in life expectancy has been observed since 2011 according to mortality tables.
markus.dewendt@open-ls.de
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