Index-based longevity solutions continue to face challenges, experts say
Basis risk continues to worry pension funds, consultants say, despite the latest attempt by Deutsche Bank to create a flexible index-based longevity hedge
Deutsche Bank hopes to provide a boost to the longevity risk market with the launch of a new index-based hedging product, but experts say it will struggle to attract insurers and pension schemes looking for customised protection.
The so-called longevity experience options (LEOs) are designed to provide firms with protection between two points on an underlying index – essentially a call spread, where hedgers are paid once the underlying moves above a certain strike, but the protection is
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