Double jeopardy
Accurately estimating longevity risk has been a thankless task for insurers, but questions are being raised that Solvency II's standard model could result in companies 'double counting' their capital requirements for this risk. Aaron Woolner Reports
One UK annuity provider has a nifty tool on its website where users can input a few simple facts such as postcode, income and smoking habits and receive an instant estimate of their likely life expectancy. Sadly for other insurers looking for a cheap and easy way to calculate the longevity risk carried on their books, this figure is accompanied by a caveat that says the company "cannot guarantee the applicability or accuracy of the results".
Longevity is a complex issue, one that cannot be
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