Longevity swaps

{
  "id": "MLC-T-INS-002053",
  "term": "Longevity swaps",
  "field": "Insurance and risk management",
  "definition": "A financial derivative contract where one party, typically a pension fund or insurer, exchanges fixed payments for variable payments linked to the actual mortality experience of a defined group of individuals. This transfers the risk of pensioners living longer than expected from the pension fund to the swap provider. The variable payments are adjusted based on the actual survival rates of the covered population, hedging against longevity risk.",
  "url": "https://mlchart.com/terminology/insurance/longevity-swaps/"
}