Hi, In this question, would the longevity risk increase if the product is offered on joint life basis? I am assuming that the product will need to continue till the second life dies which could be longer than expected, the company may not benefit from high property prices during this time? Thanks
I'm not convinced that offering joint life would increase longevity risk as such. Is there even potentially a lower standard deviation of outcomes if there are two lives rather than one (remember that risk is about the level of uncertainty)? Either way, this feels rather second-order (hence no mention in the Examiners' Report, so no credit awarded).
