| As aggregate longevity risk has become one of the main threats of pension plans, the research on how to hedge against longevity risk is vital. Considering the conditions of China and the ways of transferring longevity risk prevailing in the world, capital market solution, or securitization of longevity risk, is the sole channels that can be adopted in China. In order to push the securitization of longevity risk, several measures should be taken. Firstly, Mortality Index should be constructed by public institutions. Secondly, the method to forecast mortality is to be improved. Last but not least, the capital market in China must be perfected. |