Management Consulting
Aon
Full Credential Description
Aons Demographic Horizons toolkit addresses specific challenges faced by pension schemes, insurers, and reinsurers in modeling mortality and demographic risks. The client issues included the need for accurate mortality predictions and the assessment of longevity risk, particularly in the context of pension plan-related transactions. Aon provided a tailored solution through its comprehensive framework, which includes fully operational and locally-calibrated postcode mortality models for key markets such as the United Kingdom, United States, Netherlands, and Canada. The results of Aon's intervention are quantifiable and significant. The Demographic Horizons team has delivered best-estimate longevity and demographic advice for over £125 billion in liability related to pension plan transactions. Additionally, they have advised on longevity and market pricing for EU-based insurance company transactions amounting to 30 billion in defined benefit pensions from 2020 to 2023. In the U.S., they consulted on longevity assumptions for pension risk transfers with total premiums exceeding $10 billion during 2023-2024. Furthermore, Aon assisted a major institution in a contested mortality review for a longevity swap valued at £2 billion, which had been in place for over a decade. This comprehensive approach not only refined the clients' internal metrics but also enhanced their confidence in demographic risk assessments.