The issuer of mortality bonds is concerned about an unusually large number of premature deaths.

Question

Quizplus · Accepted Answer

Mortality bonds are a type of catastrophe bond that transfer the risk of large-scale mortality events, such as pandemics or natural disasters, from the insurer to the investor. Therefore, the issuer of mortality bonds would be concerned about an unusually large number of premature deaths as it would increase the likelihood of the bond being triggered and the investor incurring losses.

The Issuer of Mortality Bonds Is Concerned About an Unusually