Longevity risk transfer

To ensure client proximity and deliver customised solutions, Hannover Re anchors core client-related processes and functions in regional markets, while key segments – such as longevity – are steered by specialist teams in Hannover, who collaborate closely with colleagues worldwide. This enables us to combine global expertise in longevity risk with deep local market insight.

By seamlessly connecting regional teams with central specialists, we ensure that clients benefit from the full strength of Hannover Re’s expertise and resources. Our teams draw on comprehensive knowledge of products, market dynamics, distribution channels, and underwriting practices to deliver longevity solutions precisely aligned with clients’ needs and objectives.

The risk of individuals living longer than expected creates challenges, not only for the individual, but also for governments, employees, corporations offering occupational pensions, pension funds and life insurers, who face retirement-related liabilities that increase as a result of improved life expectancy.

Hannover Re offers various solutions such as regular premium annuity treaties, reserve release swaps, and mortality forwards to support our clients facing increased longevity risk.

Having been among the first regular premium annuity treaty providers in the UK, Hannover Re has drawn on the experience gained and has now successfully transferred the concept worldwide.

The assumption of longevity risks also forms an attractive part of our risk management since longevity risks are negatively correlated with mortality risks and hence lead to an improved diversification of our portfolio.

Tailoring annuity products to the needs of consumers is at the heart of our business. We have therefore developed various solutions to meet diverse consumer needs at retirement. Among those solutions are products such as deferred annuities at retirement, unit-linked annuities, equity release reassurance solutions, parent’s pocket money protection, immediate needs products, and enhanced annuities.

For underwritten annuities, we use medical, socio-economic, and lifestyle factors and have built up special expertise in pricing, underwriting, and product development that enables us to implement custom-made reinsurance solutions for our clients, including state-of-the-art underwriting processes. Key element is our automatic underwriting system that provides immediate guaranteed quotes for almost 100% of cases.