In the wake of the devastating Queensland floods, the federal government
may be missing a major innovation opportunity by opting to fund
infrastructure through a one-off levy. Michael Sherris, a professor of
actuarial studies at the Australian School of Business, believes there's
a chance to address two pressing issues – the need for infrastructure
and population ageing – with inflation-indexed longevity bonds. His
controversial idea has investors considering the possibilities. While
some argue longevity risk needs to be tackled separately, an
international expert suggests the only practical way to deal with the
risk of people living longer is to pool, tranche and securitise it. Is