The new offering allows clients to transfer longevity risk by converting uncertain future pension or annuity payments into a predictable, fixed cash flow, effectively locking in mortality assumptions and associated fees at inception.
The longevity reinsurance solution is designed to complement a variety of risk management strategies for insurers as the pension risk transfer market continues to grow amid elevated interest rates. 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 company’s expertise in mortality and longevity risk positions it to provide specialised actuarial, risk, and legal support, alongside data-driven insights on mortality assumptions.
Munich Re is now among the few reinsurers offering longevity reinsurance in North America, leveraging decades of experience in mortality risk assessment and a global perspective gained through the Munich Re Group’s significant experience with longevity transactions in Europe. The new solution further enhances Munich Re’s commitment to helping insurers balance mortality and longevity risks while growing their businesses.
“We believe there is significant, untapped demand for longevity reinsurance in the US and Canada markets, and we are well-positioned to meet it,” said Mary Forrest, President and CEO of Munich Re North America Life.
She added: “We look forward to partnering with clients to evaluate the impact of longevity reinsurance and designing a customised approach that supports their specific goals.”
