Longevity risk transfer: Amy Kessler Q&A

The longevity risk transfer market is enjoying record levels of activity even in spite of current low interest rates. The pace of development and the internationalisation of the market shows how far the most sophisticated pension schemes have come in liability-driven investment, says Amy Kessler, senior vice-president and head of longevity risk transfer at Prudential in New Jersey. 

Meanwhile, the technologies developed already are set to become increasingly attractive to a wider universe of schemes as interest rates begin to rise – shrinking deficits and creating an opportunity to remove a source of unwelcome volatility from company balance sheets.

Q1. There has been a wave of pension risk transfer activity in recent months. What are your expectations for the year ahead and what is driving the activity? 

 

Q2. What types of deals do you expect to see more of and from whom?

 

Q3. Discuss the British Telecom transaction. Did it open the door to expansion of available solutions?


Q4. Why is this happening now? Couldn't pension schemes get better pricing if they waited until interest rates were higher?

Q5. What potential growth do you see in the market and where in particular?
 

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