Life Insurance and Pension Risk Consulting

Explore AIR’s robust life insurance and pension risk analytics capabilities to optimize your portfolio, enhance your reserving strategy, and drive better risk decisions.

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Understand Volatile Mortality Trends—Today and Tomorrow

The United States has experienced significant changes to life expectancy for individual groups—both improvements and degradations—based on lifestyle habits, socioeconomic factors, and medical advancements. The granularity and individuality of these improvements cannot be captured by traditional actuarial methods and aggregated data, leading to abrupt mortality recognitions and substantial financial strain.

Do your current risk management practices help you understand the impact of these trends across your portfolio? Are you able to model these impacts at a policy-level basis?

Watch the webinar: U.S. Life Expectancy: Trends, Uncertainties, and Longevity Risk

Seamlessly Integrate Short-Term Mortality Shocks

An earthquake, terrorist attack, or pandemic could cause a major financial shock to your portfolio. Considering the impact of these short-term mortality events commonly requires information from disparate data sources and models. AIR’s consulting services enable streamlined concentration management by integrating these scenarios directly into your view of mortality risk.

Explore Our Life and Health Risk Models

Account for Uncertainty to Drive Better Risk Management Decisions

Evolving population habits and medical advancements can have financial consequences today and down the line—historical information alone is not a meaningful indicator of future risk.

AIR’s probabilistic mortality projections account for this uncertainty by assimilating several mortality and health data sets, behavioral and medical risk factors, and epidemiological research to provide you with an in-depth view of risk.

AIR’s solutions are used throughout the workflows of life insurers, annuity providers, group life and pension firms, enabling improved portfolio optimization, risk management, and risk transfer.

Armed with actionable portfolio insights, your organization can make informed business decisions based on your specific financial strategies and risk appetite.

How Can Our Life Insurance Solutions Help You?

Primary Insurers

Model your policyholders’ specific risk characteristics, rather than the average age group risk
Assess joint probability distributions of pandemics and longevity improvements
Understand mortality improvements by cause
Apply reinsurance at the individual level

Reinsurers

Understand correlated risks across contracts
Gain insight into your ceded risk
Assess mortality joint probability distributions across regions, socioeconomic status, and health class

Enterprise Risk Management Departments

Integrate hedging strategies across assets and liabilities
Simulate your balance sheet impact, including asset liability management (ALM) and embedded value
Determine the worst-case scenario by contract, line of business, or across your entire organization

Actuarial Research Departments

Enable probabilistic analysis to validate assumption-setting
Improve stress testing to your portfolio
Perform comprehensive stochastic liability assessments for reserving, ALM, and pricing

Resources

As science and technology improve, we should expect life expectancy to logically follow suit— so why did life expectancy in the U.S. drop three years in a row, and what does it mean for life insurers, reinsurers, and enterprise risk management?

Life Expectancy in the U.S.: The Risk of Moving in the Wrong Direction

The United States population is aging—it is expected that in the next 40 years, more than 20% of the population will be 65 or older. Since 1900, U.S. life expectancy has increased overall, thanks to medical advancements.

Managing the Changing Mortality Risk in an Aging U.S. Population

Although reports of opioid abuse started to become widespread in 2014 and this crisis was declared a public health emergency by the Acting Health and Human Services Secretary in October 2017, the “opioid epidemic” actually dates back to the 1990s.

The U.S. Opioid Epidemic Is a Deadly and Costly Crisis