LONGEVITY MORTALITY STRATEGIES
Enabling finance and insurance institutions to create value
from longevity and mortality opportunities and risks. |
Longevity and mortality have traditionally been the preserve of the insurance industry and pension/superannuation funds dealing in pensions, annuities and life insurance policies. However, the understanding of longevity and mortality as investment and risk factors and platforms for value creation has changed. New financial tools, investment classes, services and products have followed.
Longevity and mortality have low correlation with established financial markets, providing an exceptional portfolio diversification and risk mitigation tool for investment institutions and those directly affected by the risks and opportunities. |
The longevity mortality market will enjoy high growth and wide use as longevity and mortality risks are quantified and financial products are created for their management Opportunities exist not only for investors, but to provide significantly better longevity-based products to consumers.
The longevity mortality market directly affects pension funds, insurers, pharmaceuticals, bio-techs, the manufacturers of life and life-style products and investment institutions who are able to participate from a value creation basis. The implications are significant; the US secondary market in life insurance policies alone was valued at US$12 billion for 2007.
"By 2012 the pillars of portfolio diversification will be equities, bonds, commodities, real estate and longevity."
Longevity adversely affects pension funds and annuity providers as recipients live longer than actuarially expected, while benefiting pharmaceutical and lifestyle providers whose expected life time value per customer prove to underestimate reality, and life insurance companies who receive more premiums than predicted by their models. Mortality risk is the inverse of longevity risk, providing inverse considerations.
Longevity and mortality create value in a wide range of scenarios globally, including;
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Arbitrage:The arbitrage between the expected value of a life insurance and that of an impaired life, benefitting consumers and investors. |
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Reducing Financial Market Risk: The diversification of investment portfolio risk away from financial markets. |
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Reducing Pension Risk: The diversification of longevity risk held by pension funds. |
Longevity Mortality Strategies (LMS) is an industry and academically proven leader in life settlements arena as a value-adding market maker, providing access to the market to funds, banks and financial distribution outlets, life insurance providers, re-insurers, and investors.
Through the expanded market opportunities available in the compelling longevity markets and the expertise and strategic modelling of LMS clients are realizing increased portfolio diversity, additional market liquidity and consistent earning opportunities uncorrelated to extreme financial market fluctuations.
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LMS enables effective and profitable market participation for all possible participants. 
An explanation of the longevity markets and a selection of specific options.
Read about the latest development affecting LMS.
LMS holds a comprehensive library of papers written by its own staff and industry wide.
These are available upon request.
