Munich Re North America Life has introduced a new longevity reinsurance product aimed at helping clients manage biometric risks while accumulating assets.
The offering allows insurers and asset managers to transfer longevity risk by converting uncertain future pension or annuity payments into a fixed cash flow stream. This structure enables clients to lock in mortality assumptions and a fee at the inception of the contract, addressing the rising reserve and capital requirements associated with longevity risks.
As regulatory changes continue to evolve in the US, Munich Re said that it is positioning its new reinsurance solution to meet market demands by leveraging its financial strength and extensive expertise in mortality risk.
Mary Forrest (pictured above), president and CEO of Munich Re North America Life, emphasized the opportunity in the US and Canadian markets, stating that there is significant untapped demand for longevity reinsurance, and the company is well-equipped to address it.
“We are known for applying our scale, capacity, and insight to solve complex client challenges in ways that enable them to grow their businesses. We look forward to partnering with clients to evaluate the impact of longevity reinsurance and to designing a customized approach that supports their specific goals,” Forrest said.
Munich Re North America Life, which includes Munich Re Life US and Munich Re, Canada (Life), has been serving the US, Canada, Bermuda, and Caribbean markets for 65 years. The introduction of longevity reinsurance comes at a time when the pension risk transfer market is expanding, partly driven by elevated interest rates.
The reinsurer said that insurers looking to balance mortality and longevity risks may find the new offering a valuable addition to their risk management strategies.
The firm’s North American team, with its expertise in actuarial, risk, and legal matters, will support the execution of successful longevity transactions.
Forrest added that Munich Re is one of the few reinsurers offering longevity reinsurance in North America.
“In addition to our decades of expertise here in mortality risk assessment, we bring a global perspective and practical knowledge via Munich Re Group’s significant experience executing longevity transactions in Europe,” Forrest said.
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