Slides from a presentation at the Society of Actuaries 2007 Annual Meeting, held in October, 2007 in Washington, D.C. Discussion of population mortality experience and forecast in the USA, Canada, and the UK. Also some comparisons of population mortality improvement to insured lives mortality improvement. Also discussion of longevity risk and the implications for pension plancs

This study presents a framework incorporating key health care cost drivers. Using the framework, the study then introduces three plausible futures for health care along with broad, nonmodeled estimates of their costs that point to a very wide range of potential future costs.

In this project the researchers explored the new opportunities provided by the ongoing revolution in information technology for studies of exceptional human longevity. Methodologies and interpretation of the results were presented.

With the financial problems of social security systems, the shift from defined benefit to defined contributions, and the demographic changes happening worldwide, longevity risk and related capital market solutions have grown increasingly important in recent years, both in academic research and in the markets that have been referred to as the new life markets, that is, the capital markets that trade longevity-linked assets and liabilities. This session will investigate the risk and explore the capital market solutions to hedge longevity risk. At the conclusion of the session, attendees will be able to identify longevity risk, evaluate the longevity risk and explain the capital market solutions.

This is a helpful tool for calculating the life expectancies of an individual and/or couple at different ages.

Insurance companies have recognized the demographic tidal wave entering the senior market and they are searching for entry points in increasing numbers. But the challenge is an interesting one: Attracting and retaining senior consumers with leading-edge products and services in an economy that is better suited for conservatism. Attendees will leave this session with a broader and deeper knowledge of the senior demographic, the techniques insurers are using to successfully sell to seniors, the products that seniors find most useful, and some of the actuarial considerations for these products.

This seminar introduces (1) some commonly used stochastic mortality forecasting models, (2) longevity risk management via various longevity securities (bonds, swaps and forward contracts), and (3) an application of longevity projection in law courts. At the conclusion of the session, attendees will be able to • Develop simple stochastic mortality forecasting models using their own company data. • Compare various longevity risk management tools • Describe the use of actuarial mortality projection models in law

This paper addresses the problem of the sharing of longevity risk between an annuity provider and a group of annuitants. An appropriate longevity index is designed in order to adapt the amount of the periodic payments in life annuity contracts. From NAAJ, January 2011, Vol. 15, No.1.

One of the acknowledged difficulties with pricing immediate annuities is that underwriting the annuitant’s life is the exception rather than the rule. This paper develops a model of underlying, unobserved health. The probability of death in a given year is a function of health state, not of age. From NAAJ October 2006, Vol. 10, No. 4.

The values of life insurance and annuity liabilities move in opposite directions in response to a change in the underlying mortality. Natural hedging utilizes this to stabilize aggregate liability cash flows.The purpose of this paper is to study natural hedging of mortality risks and to propose mortality swaps as a risk management tool. From NAAJ, July 2007, Volume 11, Number 3.