Club Vita US LLC has worked with Mercer to develop a silky new lifespan forecasting tool: the VitaCurves longevity model.
Developers say the new model uses data broken down by people’s 9-digit ZIP+4 postal codes to get an extra close lifespan projection fit.
Club Vita — the Hoboken, New Jersey-based of a U.K. longevity data analysis firm — is preparing to begin offering access to its ZIP+4-based model to Mercer clients, and its own clients, in September.
Mercer is a major benefits consulting firm. It’s part of Marsh & McLennan Companies Inc.
Club Vita has been offering high-res life expectancy forecasting models in the United Kingdom since 2008. The company began offering a similar model in Canada in 2015.
Why Lifespan Forecasting?
Many employers want to shed some or all of their defined benefit pension risk, and many life insurers want to sell group annuities that employers can use in pension risk transfers.
Better longevity forecasting may help the pension risk transfer players make better deals, and it could also help reduce some pension plans’ apparent funding deficits, according to a Club Vita discussion of the VitaCurves modeling strategy.