Swiss Re calls for governments to issue longevity bonds

Leading provider of longevity derisking calls for governments to enter the market

Governments should look at the example of the inflation derivatives market and launch longevity bonds to establish a market price for the risk, according to Christian Mumenthaler, chief marketing officer at Swiss Re.

There is estimated to be about £1 trillion worth of longevity risk contained within UK defined benefit pension schemes alone, but with insurer and reinsurer capacity standing at £10 billion a year, there is a large difference between demand and supply for this derisking tool. One