Advancing Longevity Risk Management
About ILMAC
Index Longevity Market Action Committee (ILMAC) is a committee of leading practitioners and academics in the emerging longevity-risk market. We convene stakeholders to broaden adoption of index-based longevity risk transfer through credible standards and evidence.
We aim to build consensus on a market standard for basis-risk quantification and a set of principles for internal models, with the goal of providing clarity on capital relief for index-based hedges under regimes such as Solvency UK / Solvency II.
Index-based longevity hedges are seen as a critical step towards broadening the market to include greater capital markets participation. Success in this regard will help build a more secure financial ecosystem by distributing this enormous, systemic risk to a more diverse set of counterparties.
Our Approach
We focus on three strands of work that move in parallel.
2. Develop a market standard by specifying which structures qualify, proposing and validating a framework for basis-risk and capital-relief calculations, and securing alignment across stakeholders.
3. Implement with regulators by proving the approach through a quantitative case study and taking it through UK adoption steps as a model for other markets.
Why now?
preventing A Crisis requires proactively building a broader
and deeper market
Supply–demand gap: The current market is not big enough to handle the quantum of risk transfer anticipated over the coming decades; relying on a handful of reinsurers is unsustainable.
Standards accelerate adoption: Clear treatment of basis risk and capital relief would make index-based hedges more accessible and efficient for insurers and reinsurers preparing to use them.
How we engage
We run monthly working sessions with work organized into focused streams with clear owners – modeling and data, product structuring, insurance regulations, and policy perspective. Each task progresses against defined deliverables and timelines.
We host closed-door meetings with regulators to test ideas, surface operational questions, and incorporate supervisory feedback. These sessions are technical, practical, and confidential – aimed at building solutions that are implementable.
We share our progress through published materials and presentations at industry and academic conferences. In parallel, we collaborate with insurers and reinsurers on case studies and pilots to validate methods against real portfolios.
Join Us in Shaping the Future
Explore the possibilities with ILMAC and join us in cultivating a resilient and transparent financial landscape for longevity risk management.