PT  - JOURNAL ARTICLE
AU  - Peter Nakada
AU  - Chris Breaux
AU  - Mehrdad Honarkhah
AU  - Chris Hornsby
AU  - Dean Tolla
AU  - Rebecca Vessenes
TI  - The Fundamentals of Longevity Risk
AID  - 10.3905/jai.2014.17.1.055
DP  - 2014 Jun 30
TA  - The Journal of Alternative Investments
PG  - 55--78
VI  - 17
IP  - 1
4099  - https://pm-research.com/content/17/1/55.short
4100  - https://pm-research.com/content/17/1/55.full
AB  - The authors’ firm, Risk Management Solutions, has had a front-row seat in the development of catastrophe-linked securities from an esoteric, fringe asset class to a mainstream, zero-beta, alternative fixed-income asset class. Investors new to catastrophe-linked securities looked to gain enough comfort to take on catastrophe risk. The questions these investors asked followed a similar pattern: What does the historical record tell me? How can I account for future risks that are not in the historical record? How does the risk relate to my intuition around “real world” developments? Am I on the wrong side of an information asymmetry? This article aims to shed light on these questions for investors new to the asset class. In addition, the article discusses a particular approach to understanding longevity risk using the RMS LifeRisks model.TOPICS: Fixed income and structured finance, risk management