The Avoidance Of Longevity Risk Of Life Insurance Companies

In recent years,the problem of aging has intensified,and the problem of longevity risk has become a hot issue in the social and theoretical circles.The measurement and management of longevity risk has become an important research topic.This paper starts with the mortality rate,measures and fits the longevity risk in China,and predicts the development trend of mortality in the next 20 years.Then,the commercial insurance company is the research object and the main risk indicators it faces.Based on the analysis,the paper further explores the risk aversion effect provided by the old-age community to life insurance companies.The study found that the longevity risk will exist for a long time,and the pension industry has played a hedging role for the longevity risk faced by life insurance companies.Considering the status quo of China's population development,we choose to use the 1994-2012 population mortality data as a sample,and use the Lee-Carter analysis model to achieve the fitting and forecasting of China's longevity risk,because the theoretical community has not discussed the old-age facilities.The hedging effect of longevity risk,this paper builds a basic hedging model based on the theory of asset portfolio to analyze the hedging effect of long-lived risk in the old-age community.In addition,this paper selects the latest old-age community “M aging community” as a typical case,analyzes the development of the pension industry,and supports the above-mentioned hedging theory.research shows:(1)Based on the Lee-Carter analysis model,we forecast the 10-20 year mortality rate in China for the whole age group.It is found that the future mortality rate of our population is decreasing year by year and the risk of longevity is increasing day by day.This is in line with our general perception,also prompted us to pay attention to the need for longevity risks;(2)According to the model test of this paper,it is found that the pension industry can realize the risk hedging of non-systematic risks and systemic risks(longevity risks)faced by life insurance companies,and the compensation effect on longevity risks is better than non-non-Systemic risk.It is confirmed that the partial hedging effect of the pension industry on the longevity risk of life insurance companies exists.(3)The case study of M community further proves the role of pension community construction in the hedging risk of life insurance companies.