HAMILTON, Bermuda--(BUSINESS WIRE)--Club Vita, an international leader in longevity analytics, and Longitude Exchange, the new digital marketplace for trading longevity and mortality risk, today announced their collaboration to improve the efficiency and transparency of the longevity risk transfer market.
The two companies are collaborating to integrate Club Vita’s leading longevity risk classification services into Longitude Exchange’s digital platform, allowing risk takers and cedants to tailor longevity risk derivative instruments specifically to their needs while encouraging the development of a liquid secondary market.
“We’re very excited to see the launch of Longitude Exchange,” said Douglas Anderson, Founder and Chief Visionary Officer of Club Vita, “with the expected rapid growth in volume of pension risk transfer deals in the UK, US and Canada in the coming years. 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. We’re now seeing strong demand for longevity risk transfer, and greater interest in parametric forms of structuring contracts.”
“Any market needs an agreed unit of measurement for it to function – and the longevity market is no different,” said Avery Michaelson, Founder of Longitude Exchange. “With the classification systems developed by Club Vita to parameterize longevity trend risk for pension and annuity liabilities, we can enable market participants to trade in a common currency, effectively matching up buyers and sellers and encouraging secondary trading by appealing to a broad spectrum of risk takers.”
“Longitude Exchange’s experience in structuring index-based longevity risk transfer transactions for insurers, together with their investment in new technology, feels like a perfect match for our data-driven longevity insights,” added Anderson. “We can’t wait to get started.”
About Longitude Exchange
Longitude Exchange is a digital marketplace dedicated to trading longevity risk. We connect hedgers and investors on a platform optimized for transferring longevity risk in index-based format. Our platform is purpose-built to bring transactional efficiency and enhanced liquidity to a market with growing demand for capital. It contains tools for analyzing the actuarial and financial aspects of longevity risk transactions which streamline the process of hedging and investing in longevity risk. Longitude Exchange brings greater capacity, faster execution, and better prices to the longevity risk market. We're turning longevity risk into an asset class.
Longitude Exchange was formed through a partnership between Longitude Solutions - a transaction-oriented consultancy with expertise in longevity risk management - and VB Risk Advisory - a consultancy firm consisting of a select group of experienced quantitative advisors with expertise in actuarial science and technology development.
For further information, please visit https://longitude.exchange and follow Longitude Exchange on LinkedIn.
About Club Vita:
Club Vita’s mission is to improve later life financial well-being by promoting awareness of longevity risk and making its management transparent and efficient.
We work primarily with workplace pension funds in the UK, Canada and the US. On their behalf, we facilitate the accumulation and pooling of data underlying the longevity patterns of retirees with annuity benefits. Club member pension funds and their advisors use our analytics to understand their emerging longevity patterns, to drive more informed strategic decisions and to embed best-practice risk-management into their governance frameworks. We also support financial institutions that manage longevity risk: insurers, reinsurers and asset managers, helping them offer attractive longevity risk protection products in a tech-enabled, efficient manner. Our current community includes 400 pension funds, 7 pension advisory firms and 25 (re)insurers. Across our three clubs, we are tracking the survival patterns of a diverse population of over five million people with benefits in workplace pension plans.
Club Vita was born in the UK in 2008. Our systems and processes were designed by a multi-disciplinary team, with a shared passion for “allowing the data to do the talking” by combining modern technology and statistical techniques. Following a successful UK launch, we went on to build similar communities in Canada (2015) and in the United States (2019).
For further information, please visit www.clubvita.net and follow Club Vita on LinkedIn.
