PT - JOURNAL ARTICLE AU - Vilas Kuchinad AU - Julia Robinson AU - Derrick D-Souza TI - Longevity Risk Mitigation: <em>Moving Toward a More Liquid Market</em> DP - 2013 Sep 21 TA - Special Issues PG - 45--52 VI - 2013 IP - 1 4099 - https://pm-research.com/content/2013/1/45.short 4100 - https://pm-research.com/content/2013/1/45.full AB - The past 5 years have seen significant growth in awareness of longevity risk. Both pension plans and insurance companies recognize the need to quantify, manage, and hedge their longevity risk. Despite a booming equities market, plan sponsors and the insurance industry are still debating how to best manage their long-tailed liabilities. Most recently, we saw the firsthand impact in the U.S. when the city of Detroit filed for the largest municipal bankruptcy in the nation’s history, citing pension fund liabilities as a key driver. The current low interest rate environment, coupled with regulatory uncertainty, has forced the financial industry as a whole to rethink liability management. The goal is no longer asset allocation and maximal return—it’s a multitude of factors, including effective management of longevity risk. In this article, we examine the growth of the longevity hedging market, the factors driving the growth, and the factors that have limited its further development and compare traditional/bespoke solutions to a standardized index-based approach.