ClubVita Session Series Buyouts and indemnity swaps remove all the longevity risk from an underlying population. However, they can be difficult to unwind and are not very flexible or widely tradable. Explore the characteristics and product structures of indexed based longevity swaps, demonstrating how they can cover any term, how they hedge the key component of trend risk and how, with new technology developments, they could lead to a liquid market.
By attending this session, you will be able to:
- Understand how best to create hedging products that minimize basis risk for different underlying populations
- Learn new product designs for hedging specific types of longevity risk
- Understand how the wide adoption of such products can create a liquid and efficient market for longevity risk
TRACK: Spearheading innovation through change