Coffins for boffins

A couple of weeks ago I wrote a piece about the securitization of mortality risk. This rather arcane area of actuarial joy would float no boats whatsoever if it weren't for the fact that it linked together two items that fascinate us -- money and death.

Life insurance does this anyway, but people seem less happy when two other parties start making financial deals dependent on how long we live. Life reinsurance does just that, but the recent rather spectacular implosion at Scottish Re (based, of course, in Bermuda), has led life assurers to look for other means by which they can transfer some of that irritating risk they carry should we, their clients, pop our clogs en masse (for example in a 'flu pandemic).

( more, and a heroin tirade )