Insurers eye longevity swap market
The withdrawal of banks from the longevity swaps market is presenting opportunities for insurers to muscle in. But while pension schemes may be keen to offload longevity risk to the insurance market, pricing and risk analysis of the deals can be difficult. Thomas Whittaker reports
Insurers and reinsurers are making their presence felt in the longevity swap market. In January, Legal & General (L&G) undertook its first longevity swap transaction, confirming a £1 billion deal with Pilkington Superannuation Scheme. Later in the year, Swiss Re signed its first longevity swap deal for three years, with a £1.4 billion transaction with the pension scheme of Dutch chemicals group AkzoNobel.
Other insurers and reinsurers are also looking at opportunities to take on the longevity
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