If the institution offering the pension scheme underwrites the liability to coveragainst biometric risk, they must hold on a permanent basis additional assets above the technical provisionsto serve as a buffer.

More usually, insurance is sought in the face of adverse outcomes such as bad healthor loss due to theft or damage, whereas biometric risk involves the risk that the individual lives to or beyond a certain age.

Biometric risk covers all risks related to human life conditions, such as death, birth, disability,age, and number of children.