Decumulation Life insurance Products After Retirement

Traditionally, life insurance is mainly focused on saving and protection purposes during the accumulation phase before retirement age. However, recent developments such as the huge increase of life expectancy at old ages or the importance of Defined Contributions (DC) occupational pension plans encourage life insurers to offer savings and distribution solutions for the decumulation period after retirement age. Classical propositions involve lifetime, temporary or deferred annuities. Other modern products have been introduced in various markets, based on greater sharing of financial and mortality risks between the insured and the insurer. These instruments also pose interesting actuarial challenges in terms of product management, pricing and capital requirements.

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