Swiss Re and composite insurer NTUC Income are to partner on a longevity agreement.
According to a press statement, the partnership will help shield Income from future variations in its annuity book, by sharing with Swiss Re any future payments to annuitants who live beyond their age expectancy.
It’s been described as the first longevity arrangement of its kind in Singapore, and comes as many Asian markets witness a rapidly ageing society.
Russell Higginbotham, CEO of Reinsurance Asia and Regional President Asia for Swiss Re, said: “It’s important the re/insurance industry works with governments and society to plan and mitigate the risks of an ageing population.”
“In this instance, Swiss Re leveraged its global longevity reinsurance expertise, deal-making track record and local market knowledge to tailor a solution that helps de-risk Income’s legacy annuity book.”
He added: “We welcome the opportunity to work with our insurance partners and to offer them confidence to pursue their own solutions that support an ageing society.
“We expect to partner with more clients in Asia to achieve similar positive outcomes. This is part of our mission to close the protection gap here in the region and around the world.”
Lau Sok Hoon, Income’s Chief Actuary, commented: “As Singaporeans live longer lives, Income places a strong focus in ensuring seniors’ access to insurance. We are glad to have found a like-minded partner in Swiss Re who also appreciates the importance of empowering older Singaporeans to be more financially ready in the years ahead. Only with better financial wellbeing may we empower our seniors to age successfully and take charge of that narrative.”
