Defined benefit pension plans and annuity providers in the insurance world face increased liabilities from improvements in life expectancy. Until recently the only option available to mitigate this risk was to complete a pension buy-out where liabilities are completely transferred from a pension fund to an insurer. It is now possible to hedge against longevity risk on the capital markets using financial instruments. The launch of the Life and Longevity Markets Association in 2010 is testament to the growth of this market.
The non-annuity longevity market is dominated by investment banks, with a number of dedicated specialists operating within consultancy firms. With a network than spans both banks, insurers and consultancy firms Plenum has a competitive advantage in sourcing these individuals.