Constitution of an Expert Committee on Longevity Finance

  • July 15, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Constitution of an Expert Committee on Longevity Finance

Subject : Governance

Context : Recently, the International Financial Services Centres Authority (IFSCA) has constituted an Expert Committee to develop a Longevity Finance Hub in GIFT IFSC.

Concept :

  • The committee is tasked to recommend approach towards development of Longevity Finance Hub and provide road map for the same.
  • It is being co-chaired by Ms. KakuNakhate, President and Country Head (India), Bank of America, and Mr. Gopalan Srinivasan, Ex-CMD, New India Assurance Company Limited.
  • It comprise of leaders from the entire longevity finance ecosystem including from areas such as banking, insurance, wealth management, FinTech, legal, compliance and management consultancy.

International Financial Services Centres Authority (IFSCA)

  • It has been established in 2020 under the International Financial Services Centres Authority Act, 2019.
  • It is headquartered at GIFT City, Gandhinagar in Gujarat.
  • It is a unified authority for the development and regulation of financial products, financial services and financial institutions.
  • The GIFT IFSC is the maiden international financial services centre in India.
  • Its objective is to develop a strong global connect and focus on the needs of the Indian economy as well as to serve as an international financial platform for the entire region and the global economy as a whole.

Longevity Derivatives

  • They are a class of securities that provide a hedge for parties exposed to longevity risks through their businesses, such as pension plan managers and insurers.
  • These derivatives are designed to deliver increasingly high payouts as a selected population group lives longer than originally expected or calculated.
  • The derivatives are securities that derive their value from price fluctuations in an underlying asset or group of assets.
  • They are designed to offer some protection against the risks by enabling investors to make money on the side from people living longer.
Constitution of an Expert Committee on Longevity Finance Governance