more important issue that we address. In actuarial practice, the different mortality levels of the several risk classes are … obtained by applying adjustment coefficients to population mortality rates. Such a choice is not supported by a rigorous model …. On the other hand, the heterogeneity of a population with respect to mortality can formally be described with a frailty …

, particularly for advanced retirement ages. Using real-world mortality data and stochastic multi-population mortality model, we find … degrees of risk aversions. Meanwhile, numerical analysis shows that the proposed TILA could greatly mitigate the solvency risk … presence of longevity shock, and therefore could reduce the insurer's required solvency capital under latest solvency …

into a simulation quandary concerning the management of solvency capital risk associated with mortality and longevity. More … approach. Using this efficient simulation method, we further investigate hedging strategies that utilize mortality … caused by, for example, sudden mortality changes due to the COVID-19 pandemic. To prevent any large movements in this …