This project will focus on developing tools which combine expertise in finance, actuarial science, probability theory, differential equations and numerical methods.
Dr. Tom Salisbury, York University
With many baby-boomers entering retirement in North America, and with the increasing size of the aging population worldwide due to economic and social development, managing retirement income becomes an important question for the finance and insurance industry as well as for individuals. At the same time, corporations are stepping away from the standard “pensions" they have traditionally offered employees. As a result, individuals are responsible more often for managing the risks associated with securing their retirement income. Thus, new products are being designed and offered to retirees which are substantially more sophisticated and complex than standard annuities. Many of them differ from traditional products because of their blend of features from both finance and insurance. This has created a new product known as “finsurance", which demands novel and innovative tools combining expertise in finance, actuarial science, probability theory, differential equations and numerical methods. Thus, this project will focus on developing such tools.