The coronavirus pandemic has already had a significant, direct
impact on mortality rates worldwide. That is not surprising.
However, market commentators1 suggest that its impact on
longevity is less clear. That is because indirect effects of the
virus could have a positive or negative effect on longevity.
Those indirect effects include the health of the surviving
population and the economic, social and political consequences of
the steps taken to tackle the virus.
Despite the uncertainty, Guernsey has continued to see
significant growth in longevity swap transactions structured
through Guernsey cell companies.
Market leader
As set out in our earlier briefing 'Pension
funds: hedging longevity risk', Guernsey has become a
leading jurisdiction for longevity risk transfers as pension funds
look to the reinsurance market to transfer longevity risk in order
to counter their increasing exposure as a result of increased life
expectancy.
