Longevity Risk Task Force

The subgroup will evaluate current US and international practices for considering longevity risk in reserves and required capital for life and annuity products, and form a recommendation as to how an explicit longevity risk margin or charge should be incorporated into statutory reserve requirements, risk-based capital requirements, or both. At this time the group will focus on a conceptual framework for such a charge or margin, and will not make any recommendations as to the detailed, specific methodology or calculation for determining the charge or margin. Considerations will include the following, and will be part of the documentation supporting the recommendation:

  • The nature and scale of longevity risk in various insurance products currently sold
  • Approaches used in other jurisdictions, including underlying rationale (note: this item will be reviewed early in the process)
  • Approaches used by insurance company management to evaluate the risk
  • Margins included in current statutory reserves
  • Diversification benefits associated with mortality risk
  • Severity, volatility, and speed of onset of the financial impact of longevity risk

Staff liaison: Ian Trepanier

Chairperson: Patricia Matson

Noel Abkemeier
Nancy Bennett
Thomas Berry
James Eubank
Vincent Granieri
Jeffrey Hartman
Stephen Murphy
Paul Navratil
Richard Owens
Arthur Panighetti
Peretz Perl
James Reiskytl
Linn Richardson
Wayne Stuenkel
Daron Yates

Related Publications

Tricia Matson, Chairperson of the Academy’s Longevity Risk Task Force (LRTF) presentation to the NAIC's Life Risk Based Capital Working Group. (August 06, 2017)
Tricia Matson, chairperson of the Longevity Risk Task Force, gave a presentation to the NAIC's Life Risk-Based Capital (RBC) Working Group regarding the development of a methodology for recognizing longevity risk in statutory reserves and RBC.  (April 08, 2017)
Tricia Matson, chair of the Longevity Risk Task Force, gave an update to LATF on the task force’s work, including creating a methodology for recognizing longevity risk in statutory reserves and risk based capital (RBC) and reviewing regulatory and company approaches to longevity risk. (December 08, 2016)
The Longevity Risk Task Force gave a presentation to the Financial Stability Oversight Council (FSOC) Nonbank Designations Committee on longevity risk in annuity and life insurance. (November 01, 2016)
Longevity Risk Task Force presentation to the Federal Reserve Insurance Policy Group on longevity risk in annuity and life insurance. (September 30, 2016)
Art Panighetti, a member of the Longevity Risk Task Force, update to LATF on the task force’s work, including creating a working definition of “longevity risk,” analyzing U.S. mortality tables and reviewing regulatory and company approaches to longevity risk. (August 24, 2016)
Longevity Risk Task Force Update Presented to LATF
Task Force Makes Longevity Risk Presentation to Federal Reserve
Task Force Makes Longevity Risk Presentation to FSOC
Task Force Updates LATF on RBC, Longevity Risk Issues
Task Force Update on Longevity Risk
Task Force Update on Longevity Risk