The purpose of this study is to analyze securitization of longevity risk with an emphasis on longevity risk modeling and longevity bond premium pricing. Various longevity derivatives have been proposed, and the capital market has experienced one unsuccessful attempt by the European Investment...

Risk management is nothing new, despite the increased attention given to the subject over the past decade or two. For well over one hundred years farmers have engaged in risk management, hedging their risks against price fluctuations in commodity markets. Unlike a family farmer, however, a...

1 Introduction -- I Fundamentals of Risk Classification -- 2 The Theory of Insurance Pricing: Loss Distributions and Expected Value -- 3 The Economic Role of Risk Classification -- 4 Heterogeneity in Risk Classification -- 5 Fairness in Risk Classification -- 6 Conclusions to Part I -- II...

The U.S. government is the world’s largest financial institution, providing credit and assuming risk through diverse activities. But the potential cost and risk of these actions and obligations remain poorly understood and only partially measured. Government budgetary and financial accounting...