That complexity leads to the second factor that defines the challenges we face today: more than ever, we can only make progress by working together across countries, sectors and disciplines. Take our response to the pandemic as an example. This was a challenge that could not be tackled by governments acting alone, or even by governments cooperating with each other.
The pension sector has managed liabilities related to longevity risk without specific hedging instruments. Thus the exposure to longevity has been part of the pension sector's overall risk management. 2. Reinsurance companies have provided capital to the pension sector seeking hedging opportunities. 3. The pension sector has also transferred their pension contracts to external investors who have assumed the contractual obligations, cf. Slide 20.