HAMILTON, Bermuda–(BUSINESS WIRE)–Club Vita, a global leader in longevity analytics, and Longitude Exchange, the new digital marketplace for longevity and mortality risk trading, today announced their collaboration to improve 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 the Longitude Exchange digital platform, allowing risk takers and cedants to tailor longevity risk derivatives specifically to their needs while encouraging the development of a liquid secondary market.
“We are very pleased to see the launch of Longitude Exchange,” said Douglas Anderson, Founder and Visionary Director of Club Vita, “along with the expected rapid growth in the volume of pension risk transfer agreements in the UK, US United States and Canada in the coming years. We have long believed that an effective way to set and trade longevity risk will become essential to increasing market capacity. This will be essential to enable more pension plans and insurers to transfer and manage their longevity risk and ultimately improve the financial security of retiree populations around the world.We are now seeing strong demand for longevity risk transfer and increased interest for parametric forms of structuring contracts.
“Any market needs an agreed upon unit of measure 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 buyers and sellers. and encouraging secondary trading by appealing to a wide range of risk takers.”
“Longitude Exchange’s experience in structuring index-based longevity risk transfer transactions for insurers, as well as their investment in new technologies, seems to be a perfect fit with our data-driven longevity insights,” Anderson added. “We can’t wait to get started.”
About Longitude Exchange
Longitude Exchange is a digital marketplace dedicated to longevity risk trading. We connect hedgers and investors on a platform optimized for longevity risk transfer in index form. Our platform is specifically designed to bring transactional efficiency and increased liquidity to a market with a growing demand for capital. It contains tools for analyzing the actuarial and financial aspects of longevity risk operations that 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 are transforming longevity risk into an asset class.
Longitude Exchange was formed through a partnership between Longitude Solutions – a transaction-focused advisory firm with expertise in longevity risk management – and VB Risk Advisory – an advisory firm comprised of a select group of experienced quantitative advisors with expertise in actuarial science and technology development.
For more information, visit https://longitude.exchange and follow Longitude Exchange on LinkedIn.
About Club Vita:
Club Vita’s mission is to improve the financial well-being of seniors by promoting awareness of longevity risk and making its management transparent and efficient.
We primarily work with occupational pension funds in the UK, Canada and the US. On their behalf, we facilitate the accumulation and pooling of data underlying the longevity models of retirees with annuity benefits. Club member pension funds and their advisors use our analytics to understand their emerging longevity patterns, to make more informed strategic decisions, and to incorporate risk management best practices into their governance frameworks. We also support financial institutions that manage longevity risk: insurers, reinsurers and asset managers, helping them to offer attractive longevity risk protection products in an efficient and technology-based way. Our current community includes 400 pension funds, 7 pension advisory firms and 25 (re)insurers. At our three clubs, we follow the survival patterns of a diverse population of more than five million people enjoying 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 common passion to “allow data to speak” by combining modern technology and statistical techniques. After a successful launch in the UK, we continued to build similar communities in Canada (2015) and the US (2019).
For more information, visit www.clubvita.net and follow Club Vita on LinkedIn.