• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Concentration risk

TanishaS

Active Member
Hi
Would concentration risk be one of the main risks for a group pension plan in case of specific professions which have a higher risk of mortality?

Thanks
 
What is the context of this question, particularly the phrase 'concentration risk'?

There would typically be a higher mortality concentration risk if a company writes group term assurance ('group life') contracts, as compared with individual term assurance contracts. However, your example doesn't really work as there is unlikely to be a material 'sum at risk' (on death) for pension plans, since these would typically be unit-linked and the amount payable on death would simply be the fund value.

If you are asking about 'concentration risk' as used under the Solvency II SCR, then that is about concentrations of asset holdings.
 
Back
Top