JPMorgan has created an index for the pension industry aimed at measuring and managing both longevity and mortality exposure.
The LifeMetrics index will enable pension plans to calibrate and hedge the risk associated with the longevity of their beneficiaries.
It incorporates historical and current statistics on mortality rates and life expectancy, across genders, ages and nationalities.
LifeMetrics was developed with Watson Wyatt and the Pensions Institute at Cass Business School in London.
Initially, the index is available for the United States, England and Wales, and the company intends to introduce similar indices for other countries in the coming months.
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