Longevitas tools and the bulk-annuity market

Aon recently published the results of a survey of the bulk-annuity market in the UK.  Longevitas Ltd is pleased to add that four of the eleven companies listed use the leading-edge Longevitas survival-modelling software.

In pricing bulk annuities, insurers get one chance to price the risk accurately.  For large pension schemes with credible experience data, it makes sense to analyse all the possible risk factors.  Longevitas enables insurers to analyse scheme-specific risk factors in addition to age, gender, lifestyle, pension size, health status, duration, time trends and cohort effects.  Longevitas makes it easy to create postcode-driven lifestyle groups to complement pension size as an assessment of socio-economic status.

For small schemes without credible experience data, many actuaries use mortalityrating.com.  This uses a bespoke model with five risk factors, and provides a detailed analysis of scheme mortality risk in an easy-to-use PDF report.