Pension Insurance Corp (Pic) has entered the longevity insurance market by launching an insurance product to protect defined pension funds and their sponsors against the cost of pensioners living longer than expected.
The insurer, which is a subsidiary of the Pension Corporation Group, believes the product is first type of insurance policy on offer to cover pension funds. The longevity insurance policy will refund pension funds for the the cost of any future pension payments that occur as a result of pensioners living longer than their life expectancy.
Pension funds will pay fixed annual premiums, to be set at the start of the policy, in return for the protection. The policy will be valid until the death of a pension fund’s last covered pensioner or their dependant, such as a spouse.
The firm says the product is not the same as others available in the market because it specifically covers the longevity risk of the pension fund and not the longevity risk of the population at large.
Pension Insurance Corporation launches longevity insurance policy
Financial Services > Income lnsurance > News
Pension Insurance Corporation launches longevity insurance policy
Mon, 02 Jun 2008
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