| Summary: | 碩士 === 淡江大學 === 保險學系保險經營碩士班 === 96 === Demographic aging has become a popular discussion in recent years. The reason for this phenomenon is because of decreasing in birth rate and mortality rate. Decreasing of mortality rate may make investors’ life expectancy increase so they will generates a stronger need to invest for retirement. In another words, changing in mortality rate could affect stock market. This may reveal an important message to insurance company and pension fund: if mortality rate and stock market are correlated, this relation could be a new way for insurance company and pension fund to hedge the volatility of mortality rate.
This paper studies the link between mortality rate and stock market in fifteen countries, furthermore, we pooling these countries by G5 and OECD. We find that mortality rate variables indeed predict stock premium in several countries, but the relationship is not monotonic. To further describe which characteristics make the difference, we pooling these countries by social security and financial market development. The results reveal that mortality rate variables will be significant in the countries with high social security and high financial market development.
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