The Cross-Section of Asia-Pacific Mortality Dynamics: Implications for Longevity Risk Sharing

  • The Cross-Section of Asia-Pacific Mortality Dynamics
  • Enrico Biffis, Yijia Lin, Andreas Milidonis
  • Journal of Risk & Insurance, January 2017, Wiley
  • DOI: 10.1111/jori.12194

What is it about?

We study longevity risk (the risk of living longer than expected) in several Asia-Pacific countries. We split longevity risk into a component affecting several countries together, and another country-specific component. We then show that for some pairs of countries in the Asia-Pacific the country-specific component moves in the opposite direction. Hence countries can benefit from hedging by trading their country-specific component.

Why is it important?

The article using a new dataset and it identifies pairs of countries that have negatively correlated country-specific longevity risk. The article is important because it proposes a partial solution to decreasing exposure to longevity risk across countries.

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http://dx.doi.org/10.1111/jori.12194

The following have contributed to this page: Mr. Andreas Milidonis

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