Longevity/mortality risk measurement and management; mortality modeling and forecasting; longevity annuity; weather derivatives
Life contingencies; financial derivatives
Professor Zhou is an Assistant Professor at the University of Manitoba. She holds a Ph.D. degree in Actuarial Science from the University of Waterloo and is a Fellow of the Society of Actuaries (FSA) and an Associate of the Canadian Institute of Actuaries (ACIA). Professor Zhou has been publishing in high quality actuarial journals such as the Journal of Risk and Insurance, Insurance: Mathematics and Economics, and the North American Actuarial Journals. She is also a frequent speaker at the International Longevity Risk and Capital Markets Solutions Conference.
Professor Zhou’s research focuses on the management of mortality and longevity risk. Many financial institutions are exposed to longevity risk - the risk that people will outlive their expected lifetimes. For pension plan sponsors and annuity providers, the longer people live, the greater the period of time over which lifetime income must be paid, and hence the larger their financial liabilities. Longevity risk has become a high profile risk in recent years, partly because human mortality has been improving faster than expected over the past few decades, and partly because its consequence exacerbates as the baby-boomers retire. Recently, standardized longevity securities written on broad-based mortality indexes are developed. It is believed that standardization can attract demand, because standardized securities are more transparent to investors and are more conductive to liquidity. Professor Zhou has proposed new pricing methods for these securities, and also developed multi-population mortality models that facilitate the analysis of these securities.
Professor Zhou has recently gained interest in weather risk management. In particular, she is interested in the application of weather derivatives in various business sectors, such as agriculture and electricity production.