The Joint Forum released two consultative reports: "Longevity risk transfer markets: market structure, growth drivers and impediments, and potential risks" and "Point of Sale disclosure in the insurance, banking and securities sectors". Deadline for comments on both reports is 18 October, 2013.
Longevity risk – the risk of paying out on pensions and annuities longer than anticipated – is significant when measured from a financial perspective. For example, certain estimates of the total global amount of annuity - and pension-related longevity risk exposure - range from $15 trillion to $25 trillion. At the same time, pension funds are increasingly looking for ways to hedge or transfer this exposure. The Joint Forum is therefore publishing this forward-looking consultative report to draw attention to this issue of increasing importance, to assist in setting appropriate policies and to help ensure effective supervision of related activities and risk.
Mr Thomas Schmitz-Lippert, Chairman of the Joint Forum and Executive Director, International Policy/Affairs of BaFin, the German Federal Financial Supervisory Authority, stated that "by focusing today on the risks and issues related to emerging longevity risk transfer markets, the Joint Forum is helping global policymakers and supervisors remain ahead of the curve as these markets continue to grow".
Point of Sale disclosure in the insurance, banking and securities sectors identifies and assesses differences and gaps in regulatory approaches to point of sale (POS) disclosure for investment and savings products across the insurance, banking and securities sectors. The report considers whether regulatory approaches to POS disclosure need to be further aligned across sectors. It proposes a number of recommendations, mainly to policymakers and supervisors, to assist them in considering, developing or modifying their POS disclosure regulations.
The deadline for comments on both reports is 18 October, 2013.
Press release
Longevity report
Point of Sale report
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