Insurance longevity swaps: Illuminating exits

Trustees appear comfortable with buy-ins as part of a scheme's derisking journey, as buy-in contracts readily provide for future conversion into buyout.

This 'exit' route releases the trustees from their obligations to the insurer and members, and enables them to proceed with winding up.

Less commonly understood is that longevity swaps can also be structured flexibly to enable the trustees to exit when desired in the future. The key is to set clear exit objectives at the outset and incorporate them into the design of the swap. 

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