Longevity securitisation could boost ratings

Well-executed embedded value securitization could potentially have a favourable ratings impact on Life insurers.

This is the opinion of Miles Kaschalk, associate director at Standard & Poor's, speaking at the rating agency’s recent Insurance 2012 Conference.

However another panellist at the conference, Dennis Ho, director at Deutsche Bank, said that there is "very little market for longevity risk" in the US and Canada because there is "no regulatory push" driving the market.

Kaschalk also noted that "the length of these transactions is greater than what we currently think the modelling can accurately represent."