Xpect Data and Indices for Banks

Banks participate in the longevity risk transfer market by simulating and trading longevity risks based on structured financial products. Longevity risk products like forwards or swaps rely on the availability of objective and up-to-date underlyings such as indices. These indices represent the longevity risks and changes in liabilities of insurance companies and pension funds.

Xpect® Indices provide banks and other financial (buy-side) institutions like asset management funds with objective and up-to-date underlyings. Structured financial products can thus be defined to transfer longevity risks from insurer or pension fund to the capital markets. Xpect Indices are available as non-portfolio related indices acting as a general or parametric benchmark. Customized indices reflect the portfolio liabilities of the insurer or pension fund that are exposed to longevity risks. Xpect customized indices reduce the basis risk per definition. They act as a publicly available benchmark (market beta). Based on the request of leading banks, Xpect provides age and cohort related indices for open and closed portfolios.

Banks are already using Xpect Data as a basis to develop new products, such as retail products for the growing market of financial instruments for the older generation. As Xpect Data provides monthly objective up-to-date mortality and longevity data, banks evaluate and develop longevity covering products for risk and pricing purposes.

Xpect Data and Indices are available for Germany, the Netherlands, England and Wales. Other countries will follow.