Club Vita and Longitude Exchange are to collaborate on improving the efficiency and transparency of the longevity risk transfer market.
According to a statement, the two companies are collaborating to integrate Club Vita’s longevity risk classification services into Longitude Exchange’s digital platform.
Douglas Anderson, founder and chief visionary officer of Club Vita, said it was exciting to launch Longitude Exchange.
He added: “We have long believed that an effective way to parameterize and trade longevity risk will become essential for increasing capacity in the market. This will be vital in enabling more pension plans and insurers to transfer and manage their longevity risk, and ultimately improve the financial security of pensioner populations worldwide.”
He went on: “We’re now seeing strong demand for longevity risk transfer, and greater interest in parametric forms of structuring contracts.”
There has been a lot going on at Club Vita in recent weeks. The firm recently consolidated its three separate business in the UK, US, and Canada into one entity.
As Reinsurance News wrote back then, the company uses ZIP codes and other characteristics of the participants of defined benefit pension plans to capture the diversity of life expectancy and help plan sponsors make more informed decisions on funding and risk management.
Club Vita now has over 50 employees and relationships with 400 pension funds, 7 pension advisory businesses, and 25 insurers globally.
