Skip to content

Munich Re North America Life introduced a longevity reinsurance for the US and Canada

Munich Re North America Life introduced a longevity reinsurance for the US and Canada

Munich Re North America Life, a subsidiary of Munich Re, has introduced a longevity reinsurance solution for the US and Canada. This product helps clients transfer biometric risk while building assets.

While the longevity reinsurance market in North America lags behind Europe, Munich Re’s entry could signal greater adoption of these solutions in the region.

Longevity reinsurance allows clients to convert unpredictable pension or annuity payments into a fixed cash flow. This involves setting mortality assumptions and fees at the start of the contract.

Mary Forrest, President and CEO of Munich Re North America Life, states, “We see strong, untapped demand for longevity reinsurance in the US and Canada, and we are well-equipped to meet it.”

The launch occurs amid increasing reserve and capital requirements for longevity risks, with further regulatory changes expected in the US. Insurers and asset reinsurers can now use Munich Re’s balance sheet and mortality expertise to manage these risks.

Munich Re North America Life, including Munich Re Life US and Munich Re, Canada (Life), has been active in the US, Canada, Bermuda, and Caribbean markets for 65 years.

Their longevity reinsurance can complement various risk management strategies, particularly as the pension risk transfer market expands with rising interest rates.

Our decades of experience in mortality risk assessment, combined with Munich Re Group’s extensive background in European longevity transactions, positions us well

Mary Forrest, President and CEO of Munich Re North America Life

Their team in North America brings specialised actuarial, risk, and legal expertise to support successful longevity transactions. The company also offers data-driven insights on mortality assumptions, which are vital for accurate pricing and risk assessment in longevity reinsurance.

The pension risk transfer market has seen notable growth in recent years. As insurers balance mortality and longevity risks, the demand for longevity reinsurance has increased.

Mary describes their approach: “We apply our scale, capacity, and insights to solve complex client challenges, helping them grow. We look forward to working with clients to evaluate the impact of longevity reinsurance and create customised solutions for their needs.”

Munich Re’s new offering allows clients to offload longevity risk—the risk that pension members or annuity holders live longer than expected. This helps insurers and pension schemes manage their long-term liabilities more effectively.

Yana Keller by Yana Keller