Sun Life Continues Partnership with RMS to Deepen Longevity Risk Expertise
Three-year deal will help Sun Life better serve its clients
NEWARK, Calif. -
May 13, 2015 -
RMS, the world’s leading catastrophe risk management firm, today announced that Sun Life Assurance Company of Canada (Sun Life), one of the largest insurers in Canada, has renewed its agreement to license the RMS® Longevity Risk Model Canada for an additional three years.
The extended agreement will assist Sun Life to continue strengthening its longevity risk expertise and analytics within Canada, and support the company in serving its clients as the leading supplier of retail fixed annuities, group annuities and longevity insurance.
“RMS continues to play an important role in how our organization manages longevity risk,” said Brent Simmons, senior managing director, defined benefit solutions, Sun Life Financial. “Our expertise, in conjunction with RMS models, gives us a very robust view of longevity risk, allowing us to reflect available historical mortality information as well as views on factors affecting future mortality rates. This holistic view sharpens our understanding of the risk, helping us to see the big picture and in turn, better serve our clients.”
In contrast to typical longevity models that rely solely on projecting historical mortality trends into the future, the RMS Longevity Model uses more realistic mortality trajectories. The model couples historical mortality trends with insight on mortality improvement drivers, such as advances in medical research and trends in lifestyle, reducing the uncertainty around future mortality projections.
“We’re delighted to continue partnering with Sun Life as they build greater resiliency into their longevity risk management strategy, as well as those of their clients," said Sofia Ben El Attar, director, LifeRisks at RMS. "Most longevity models exclude part of the risk because they're based entirely on historical mortality experience and therefore cannot capture the full potential for future extreme shocks. Our longevity models not only close this gap, but are updated annually to lessen the uncertainty around future mortality projections. We also fine tune our models to account for the country-specific factors that are critical to understanding future mortality trends in each country.”
The RMS Longevity Risk Model is a structural meta-model of geroscience advancement. The updated model for Canada, France, Germany, Japan, the United Kingdom and the United States was released in April 2015.
RMS models and software help financial institutions and public agencies evaluate and manage catastrophe risks throughout the world, promoting resilient societies and a sustainable global economy.