Analysing the impact of rising mortality in adult ages on financial and actuarial products

Abstract

A reversal in the trend seen since 2010 of a reduction in adult mortality holds significant economic and financial implications. Mortality and longevity models applied in 2010 projected central death rates that have not materialized, resulting in measurable economic effects. This study examines the economic consequences of two financial-actuarial products— a year-term life insurance and life annuities— in light of the worsening central death rates within the 55–70 age bracket. Conducted across twelve countries (Australia, Canada, Denmark, France, Greece, Germany, Italy, Japan, Spain, Sweden, the United Kingdom, and the United States), the research demonstrates substantial cost savings in annuity products and cost overruns in risk insurance products.