The United States has experienced significant changes to life expectancy for individual groups—both improvements and degradations—based on lifestyle habits, socioeconomic factors, and medical advancements.

The granularity and individuality of these improvements aren’t captured by traditional actuarial methods and aggregated data, leading to abrupt mortality recognitions and substantial financial strain.

 

How are volatile life expectancy trends affecting your portfolio?

Are you considering a range of mortality shock scenarios?

An earthquake, terrorist attack, or pandemic could cause a major financial shock to your portfolio. The impact of these short-term mortality events commonly requires information from disparate data sources and models, making an integrated view of risk a challenge.

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Verisk’s holistic portfolio risk analytics are here to help.

By taking a probabilistic approach to risk modeling, Verisk’s portfolio analytics capture a range of possible life expectancy improvements and degradations while considering the impact of mortality shock events.

 

Explore solutions

Life Insurance and Pension Risk Consulting services enable an in-depth understanding of the range of scenarios that can affect your portfolio, driving informed risk decisions for sustainable growth.

  • Understand mortality improvements by cause.
  • Differentiate mortality improvements by individual.
  • Assess correlation in mortality and trend risk across policies and contracts.
  • Integrate short-term mortality shocks.
  • Apply reinsurance and swaps in aggregate or at an individual level.

Learn more

 

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Resources

Life Expectancy in the U.S.: The Risk of Moving in the Wrong Direction

As science and technology improve, we should anticipate life expectancy logically to follow suit. So why did life expectancy in the United States drop three years in a row? And what does it mean for life insurers, reinsurers, and enterprise risk management?

Managing the Changing Mortality Risk in an Aging U.S. Population

The U.S. population is aging. It's expected that in the next 40 years, more than 20% of the population will be 65 or older. Since 1900, U.S. life expectancy has increased overall, thanks to medical advancements.

The U.S. Opioid Epidemic Is a Deadly and Costly Crisis

Although reports of opioid abuse started to become widespread in 2014 and this crisis was declared a public health emergency by the Acting Health and Human Services Secretary in October 2017, the “opioid epidemic” actually dates back to the 1990s.