A decline in life expectancy is having a chilling effect on a market that depends on insurers and pension funds spreading the risk of policyholders living longer . So - called longevity - risk transfer ( LRT ) transactions have slumped as carriers debate the accuracy of recent data showing an increase in mortality rates , Aon Hewitt said . The latest continuous mortality data suggests the chances of living to 65 have dropped 1.3 % for men and 2 % for women . " The pension and longevity market itself is in a state of flux " , Aon Hewitt said , fearing that if the data is wrong , the LRT market will be mispriced .
A decline in life expectancy is having a chilling effect on a market that depends on insurers and pension funds spreading the risk of policyholders living longer. So-called longevity-risk transfer (LRT) transactions have slumped as carriers debate the reliability of recent data showing an increase in mortality rates, Aon Hewitt said. The latest continuous mortality investigation suggests the chances of living to 65 have dropped 1.3% for men and 2% for women. "The pension scheme longevity market itself is in a state of flux", Aon Hewitt said, adding that if the data is wrong, the LRT market will be mispriced.