The Swiss Risk and Insurance Forum brings together experts from academia, the insurance industry, regulatory bodies and consulting companies to discuss (typically technical) topics that are relevant to the insurance industry. The main objective is to provide a platform on which people from academia can interact with those involved on the more practical side of the insurance industry. This will facilitate the knowledge transfer in both directions helping enrich the research agendas of the academic institutions and enabling those dealing with practical matters to partake in the newest academic developments.
The Steering Board of the Swiss Risk and Insurance Forum consists of H. Albrecher (University of Lausanne), P. Embrechts (ETH Zurich), D. Filipovic (EPFL Lausanne), and P. Koch-Medina (University of Zurich).
About this years event
One of the most serious challenges for society today is the financing of retirees. Demographic trends and the changed reality in financial markets have rendered traditional models for securing the financial situation of retired people inadequate. In advanced economies, the baby boom generation is starting to reach retirement age and the ratio of the number of people of working age to the number of retirees is continuously decreasing. In addition to all sorts of issues for health and social care, this trend clearly poses a serious challenge for pay-as-you-go systems. Several measures are in the process of being adopted ranging from the raising of retirement age to a greater reliance on private pension plans. An aggravating factor has been a prolonged period of low interest rates and the financial crisis which amongst its many dire consequences ended up significantly depleting the value of pension funds’ assets.
Against this backdrop it is important that academic research devotes sufficient efforts to help develop a sustainable solution to this critical problem for society. Potential contributions certainly include a thorough understanding of demographic trends in order to have a solid basis for projecting the expected future financial burden. But it is also crucial to understand how to design, price, and manage the risk of new products and mechanisms for retirement plans. Inherently linked to this is the question of how to hedge since most financial instruments have maturities that are considerably shorter than that of the liabilities that need to be backed. The long term nature of liabilities also implies that model risk should be a key concern.
The aim of this forum is to generate practical and methodological impulses for new quantitative, financial and actuarial approaches to old-age provision.
Participation is by invitation.
H.J. Albrecher, University of Lausanne; P. Embrechts, ETH Zurich; D. Filipovic, EPFL Lausanne; P. Koch-Medina, University of Zurich; J. Wagner, University of Lausanne; S. Schreckenberg, Swiss Re