LIX Price Discovery & Life Expectancy Curve
A live market-implied view of human life expectancy, formed by actual bids, offers and trades across different ages and future periods.
What is price discovery?
Insurers, pensions, reinsurers, researchers and investors already hold views about human life expectancy. Today those views mostly live inside separate models and private transactions. LIX allows them to meet in a market. When participants are willing to buy at one price and sell at another, their interaction produces an observable market price.
What does the price mean?
The price is not a promise that the market knows exactly how long people will live. It is the price at which real participants are willing to put capital behind their expectations at that moment. That makes it different from a static assumption. As new information arrives, the market can move.
From a price to a curve
LIX is designed across age and future survival periods, so the market can produce more than one headline number. Over time, prices across those contracts can form a life-expectancy curve: a view of how the market prices survival expectations across different ages and horizons. Different businesses can then look at the part of the curve that is most relevant to their own liabilities, customers or investment view.
The market can absorb new information as it arrives
COVID showed that population mortality can change abruptly. New therapeutics can change expectations in the other direction. LIX creates a place where participants can continuously debate those implications with capital and where the resulting prices can become visible to everyone.
From repricing to business action
A live price becomes useful when an institution can compare it with the assumptions already running its business. An annuity writer can ask whether expected payment duration has changed. A life insurer can reassess claims timing. A pension can revisit the value of future benefits. A health insurer can compare the market signal with medical and claims data. A reinsurer can reassess capacity and pricing. The price does not make those decisions for them; it gives them a current market reference against which to make them.