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Posts feedA head for tails
When an insurer or reinsurer takes on a new insurance risk, there are two things of special interest: the best estimate of the risk and the tail risk.
Partial buy-outs
It is quite common for a pension scheme to want to reduce its risk, but to be unable to afford a full buy-out. The question is how best to reduce risk with the funds available, i.e. which liabilities to buy out first.