Service Estimates Longevity for Pension Plan Sponsors

Club Vita looks at zip codes and other characteristics of the participants in DB plans to estimate longevity risk.

Reported by Lee Barney
Club Vita, a provider of longevity risk data, is expanding from Canada into the U.S. The company estimates the longevity of participants in defined benefit (DB) plans by examining their zip codes and characteristics.

The company says its “big data insights” reduce uncertainty and help plan sponsors make better informed decisions on funding and risk management, with an eye toward helping them reduce costs.

“The United States represents a prime  opportunity for us,” says Douglas Anderson, founder of Club Vita. “This is a nation that stands out because of the diversity of its people, its rapidly growing pension risk transfer market—which grew by around 30% to $25 billion in 2018—and its structured zip code system.”

Dan Reddy, a U.S. plan actuary, has joined the firm as U.S. chief executive. He says: “We will show that U.S. longevity differences follow the same socio-economic pathways as in the U.K. and Canada. Club Vita’s analysis will not only open the eyes of plan sponsors, but it will lead to material savings and less risk for all.”
Tags
defined benefit plan, longevity risk,
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