risk products to be sold as part of a product portfolio. Natural hedging, or the offsetting of risks in life insurance and … stochastic mortality and interest rate models to assess life and annuity capital requirements and quantify the benefits of … natural hedging taking into account relative profit loadings on products. The benefits of offering longevity products, in …

way: it needs to be hedged using a suitable hedging instrument …

annuities. Any changes in the assumptions for future mortality rates can have a major financial impact on the valuation of these … developed in Hunt and Blake (Forward mortality rates in discrete time I), we investigate how these assumptions can change over a … one-year period and the potential for hedging longevity risk in an illustrative annuity portfolio, and find that …