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.
