ICMIF Supporting Member Swiss Re has partnered with Singapore-based ICMIF member NTUC Income (Income) on the first longevity arrangement of its kind in Singapore. This partnership will help shield Income from future variations in its annuity book, by sharing with Swiss Re any future payments to annuitants who live beyond their age expectancy.
The long-term nature of annuity business can lead to high capital requirements under various solvency regimes. This partnership enables Income to improve its own capital efficiency and further strengthen its solvency position.
Many Asian markets are witnessing a rapidly ageing society. Coupled with longer lives, fluctuating interest rates and the increased need to plan for one’s retirement, consumers are keen to gain better financial security in their golden years. The insurance sector is well-placed to help empower customers to achieve better financial wellbeing by providing relevant savings and retirement solutions.
“It’s important the re/insurance industry works with governments and society to plan and mitigate the risks of an ageing population. In this instance, Swiss Re leveraged its global longevity reinsurance expertise, deal-making track record and local market knowledge to tailor a solution that helps de-risk Income’s legacy annuity book,” said Russell Higginbotham, Swiss Re’s CEO Reinsurance Asia and Regional President Asia.
“We welcome the opportunity to work with our insurance partners and to offer them confidence to pursue their own solutions that support an ageing society. We expect to partner with more clients in Asia to achieve similar positive outcomes. This is part of our mission to close the protection gap here in the region and around the world.”
Ms Lau Sok Hoon, Income’s Chief Actuary, said, “As Singaporeans live longer lives, Income places a strong focus in ensuring seniors’ access to insurance. We are glad to have found a like-minded partner in Swiss Re who also appreciates the importance of empowering older Singaporeans to be more financially ready in the years ahead. Only with better financial wellbeing may we empower our seniors to age successfully and take charge of that narrative.”