The Life insurance Market's Response to Ageing: Mega or Mini?

GUSTAVO FERRO

Taipei, Taiwán

Congreso; International Insurance Society's 44th Annual Seminar; 2008

International Insurance Society

This paper deals with the reaction of the life insurance industry to aging, and the next massive decumulation phase of pension funds worldwide. The industry has a well-established product, which is the annuity, a unique instrument to cope with longevity risk. But annuity markets remain thin. Demand-side and supply-side elements of the market are explored, and also regulatory issues. Some proposals are made in order to a more proactive involvement of the industry in the pension business, addressing demand-side, supply-side and regulatory concerns. The proposal is a Multitier Insurance Package, which combines different insurance products in order to cover longevity risk as well as bequest or long-term care motives.