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Life Longevity Risk

AdvancedRequires external valuation

Calculate the Stressed Mortality Rate instantly.

%
%

Current Mortality Rate

1.2%

×

Mortality Stress Multiplier

80.0%

=

Stressed Mortality Rate

1.0%

Life Longevity Rate Shock Impact

Shock charge
Retained value
ModuleShockPre-shockPost-shockCharge
Mortality Rate-20%1.2%1.0%0.2%
1Step 1

Stressed Mortality Rate

Stressed Mortality Rate=Current Mortality Rate×(1−Mortality Decrease)\mathrm{Stressed\ Mortality\ Rate}=\mathrm{Current\ Mortality\ Rate}\times(1-\mathrm{Mortality\ Decrease})

Understand the Life Longevity Risk

Overview

Article 138 defines the Life Longevity Risk stress for obligations where lower mortality worsens basic own funds.[1]

Input Terms

  • Current Mortality Rate: Representative pre-stress mortality rate for obligations exposed to longevity risk.[1]

Technical Rationale

Article 138 covers obligations where longer survival worsens basic own funds, especially annuity and longevity-sensitive benefit streams.[1] Lower mortality extends expected payment duration, so the economic risk is the persistence of liabilities rather than an increase in claim frequency.

The longevity mortality assumption remains separate from the portfolio-specific valuation loss because Article 138 identifies the adverse biometric direction before technical provisions and own funds are remeasured. Longevity-sensitive obligations remain separated from mortality-sensitive obligations because the same mortality movement can reduce one risk while increasing the other.

Important Notes

  • This page specifies the stress, not the final standalone Life Longevity Risk SCR.
  • Only policies where lower mortality increases technical provisions belong in this stress; this page does not validate that portfolio scope. Mortality-sensitive obligations are handled by Life Mortality Risk.

Sources

  1. Delegated Regulation (EU) 2015/35 - Art. 138 (Life longevity risk sub-module) - EIOPA

Default values are illustrative sample inputs for navigation, training, and QA. Replace them with controlled data before using the result in capital analysis, governance, or reporting decisions.