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The Cross‐Section of Asia‐Pacific Mortality Dynamics: Implications for Longevity Risk Sharing
Author(s) -
Biffis Enrico,
Lin Yijia,
Milidonis Andreas
Publication year - 2017
Publication title -
journal of risk and insurance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.055
H-Index - 63
eISSN - 1539-6975
pISSN - 0022-4367
DOI - 10.1111/jori.12194
Subject(s) - longevity , longevity risk , asia pacific , geography , economic geography , economics , economy , biology , genetics
We study the dynamics of longevity risk across a subset of countries in the Asia‐Pacific (APAC) region. We use hand‐collected and existing data on age‐specific mortality rates from emerging and developed economies to understand how secular changes in mortality vary within and across APAC countries. We use our results to identify cross‐hedging opportunities among longevity risk exposures in the APAC region. We also introduce k ‐forward contracts, which offer natural risk‐sharing opportunities to hedgers in different countries. We consider the example of Korea and Japan as a case study.