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Mortality risk

\mɔrˈtæləti\ \rɪsk\

The risk that a given individual or population will not live as long as expected (in particular leading to negative effects).

The largest holders of mortality risk are life insurers, who offer a variety of products that will increase their costs if the insured party dies earlier than expected. Mortality risk is considered the natural hedge to longevity risk and insurers and reinsurers will be motivated to use business lines with mortality risk to mitigate the effects of business lines with longevity risk.

Keep exploring our Lexicon of Longevity
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