JPMorgan and others have gone in the business of 'longevity risk', which, in English, means trying to beat the actuaries. JP created the LifeMetrics Index to enable pension plans to hedge the risk of payments to retirees and incorporated “historical and current statistics on mortality rates and life expectancy, across genders, ages, and nationalities.” To bolster its position JP has received four patents on quantifying longevity risks and structuring wagers via death derivatives.
Also, JP’s Chief Investment Office oversees Bank Owned Life Insurance (BOLI) and Corporate Owned Life Insurance (COLI) plans which allow the corporation to reap huge tax benefits by taking out life insurance policies on workers – even low wage workers – and naming the corporation the beneficiary of the death benefit. Both the buildup in the policy and the benefit at death are received tax free to the corporation. In 2009 the company had $12 billion in BOLI.
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