Deutsche Börse is internationalizing its Xpect Data offering - expanding it first to include Dutch longevity data.
In March, Market Data & Analytics started delivering monthly data on life expectancy and mortality risks in Germany, broken down according to region, year of birth and gender.
Xpect Data offers the most up-to-date figures for quantitative valuation of longevity risk. The data on population trends in Germany and the Netherlands is collated from various sources, checked and disseminated on a monthly basis. Data from this area was previously only available in the market every three to five years.
The Xpect Data product forms the basis for up-to-date and regular calculations of generation mortality tables. Unlike the data previously available, Xpect Data is based exclusively on transparent and objective statistics, and not on expert opinions. It is particularly important for the calculation of risk positions for life insurance and pension funds that longevity data is up to date and of top quality. As the population's life expectancy increases, so too do payment obligations and risk positions.
Deutsche Börse Market Data & Analytics is to introduce corresponding Xpect indices which will serve as securitization for life and pension insurance risks. Insurance companies and pension funds will thus increase their capital efficiency and lower their required risk capital. The Xpect indices will also serve as a basis for financial instruments.