Managing the risk of mortality shocks

Abstract

Topics that have been published in this special issue include: direct effects on liabilities linked to mortality and longevity risks;capital market and insurance innovations for pandemic risk management;impacts on the provision of, and demand for, healthcare;and changes in investor/policyholder behaviour. When looking at the change in annuity and life insurance policy value, they find a drop of 9% of the annuity values in case of Polish male and an increase of 29% of the life insurance policy value for Italian males. G.P. Clemente, D. Della Corte and N. Savelli (A stochastic model for capital requirement assessment for mortality and longevity risk, focusing on idiosyncratic and trend components) argue that assessment of capital requirements must be based on actuarial models that are able to capture structural changes and extreme shocks so that insurance companies can cope with the unfavourable effects of new adverse demographic scenarios.