more important issue that we address. In actuarial practice, the different mortality levels of the several risk classes are … then supposed to become larger and more heterogeneous. With respect to the insurer’s risk profile, there is a trade … obtained by applying adjustment coefficients to population mortality rates. Such a choice is not supported by a rigorous model …

Special-rate life annuities are life annuity products whose single premium is based on a mortality assumption driven … risk. Hence, the risk management objective "enhancing the company market share" can be pursued without significant … worsening of the annuity portfolio risk profile. …

result in a reduction in expected costs and equivalence premiums. However, due to the different impact of longevity risk on …, time restrictions reduce the duration of the provider’s liability, which should therefore be less exposed to financial risk … time frames for life annuity arrangements, first addressing longevity risk only, and then including also financial risk …

population mortality was based on UK experience. Results show that static hedging using q-forwards or longevity bonds reduce … static hedging of longevity is less effective because of inflation risk. Variable annuities provide limited longevity … protection compared to life annuities and indexed annuities, as a result longevity risk hedging adds little value for these …