Life Risks
| “ |
Scientific advances and medical insights allow insurers to better prepare for the financial impacts under various scenarios.” – Maria Paul, Director of RMS LifeRisks |
|---|
Understanding Life Risks:
A Changing Picture of Longevity and Mortality
Life expectancy and catastrophic natural or man-made events such as pandemics, natural hazards, terrorism and industrial or transport accidents can have cascading effects across society, businesses, governments, and geo-political borders.
Mitigating risk for future events depends on having the best understanding of a broad range of factors, such as how long people will live, what drives longevity, and what can happen when catastrophe strikes.
RMS methodologies incorporate multi-disciplinary science into mortality risk management. Our life risk modeling tools blend best-practice actuarial techniques with medical science to help you better balance risk.
The RMS LifeRisksTM platform provides stochastic simulations of future scenarios, from longevity to excess mortality. Each scenario is a detailed and accurate representation of a plausible future outcome. Generating large numbers of “what-if” scenarios provides a full depiction of loss probability distribution.
- +Drill down into model results to understand key risk drivers
- +Identify subsets of your portfolio and books of business that are contributing most to the risk you face
- +Pick scenarios that represent the key thresholds of probability of loss
- +Derive narratives to communicate risk concepts
- +Use deterministic scenarios to explore specific issues
Measuring Longevity
New generations are benefiting from tremendous advancements in medical science and can expect to live significantly longer than their grandparents. Our longevity models paint a comprehensive portrait of how life expectancy affects liabilities and financial cash flow over time.
Infectious Disease
Infectious disease is a leading cause of death worldwide, with influenza-related pandemics in particular posing a major threat. By modeling characteristics of viral infectiousness and spread and the impacts of vaccination and other mitigation efforts, this threat can be anticipated and understood.
Excess Mortality Risk
Tail volatility for mortality is driven by extreme events from specific causes, whether natural or man-made. A deep understanding of each life catastrophe enables a full assessment of future frequency and severity to help build shock-resistant portfolios.
