This paper considers the risk that actual mortality will be lower than the mortality assumed when pricing life annuities on impaired lives. It develops a method for managing this risk through a Provision for Adverse Deviation PAD.

This paper explores the financial properties of a concept product called an advanced-life delayed annuity ALDA. The ALDA is a variant of a pure deferred annuity contract that is acquired by installments, adjusted for consumer price inflation, and pays off toward the end of the human life cycle. The ALDA concept is aimed are the growing population of North Americans without access to a traditional defined benefit DB pension plan and the implicit longevity insurance that a DB plan contains. Under quite reasonable pricing assumptions, a consumer can invest or allocate $1 per month, while saving for retirement, and receive between $20 and $40 per month in benefits, assuming the deductible in this insurance policy is set high enough. The ALDA concept might go a long way in mitigating any psychological barrier to voluntary lump-sum annuitization.

At retirement, most individuals face a choice between voluntary annuitization and discretionary management of assets with systematic withdrawals for consumption purposes. Annuitization - buying a life annuity from an insurance company - assures a lifelong consumption stream that cannot be outlived, but it is at the expense of a complete loss of liquidity. There are some discussions at the end of article by Jan Dhaene, Marc J. Goovaerts, Rob Kaas, Jeferey R Brown and Mark J. Warshawsky. From NAAJ, October 2000, Volume 4, Number 4.

We consider a risk averse retiree from a defined contribution plan who decides to purchase a one-life annuity with a guarantee period. Given the retiree has a bequest motive, we focus on the problem of determining the optimum length of the guarantee period. Assuming the retiree’s bequest function is proportional to his or her utility function, we determine necessary and/or sufficient conditions under which the retiree would choose an annuity with i no guarantee period, ii the maximum guarantee period, or iii an intermediate guarantee period. From NAAJ, July 2007, Volume 11, Number 3.

Unlike traditional insurance products in which insurance companies are able to comfortably quantify profitability metrics associated with the launching of a new product, identifying and working with such metrics for VA and FIA products can be very challenging. The speakers of this session will discuss challenges and issues relating to the pricing of these products.

This presentation will examine the emerging issues surrounding credit, funding and debt valuation adjustments and their impact on hedging dynamics.

In this session, the speaker will provide an overview of the traditional distribution channels associated with the VA products and discuss how these channels have impacted in the way the products are priced, what the shortcomings of these channels are and how these channels are expected to change and (be influenced by/influence) the new generation of products.

In this presentation, speakers will discuss issues relating to the above and outline what pricing/valuation actuaries need to concern themselves with as financial reporting and regulations keep evolving.

The speakers will provide a discussion on the issues encountered in implementing a risk-management platform and touching on all the challenges associated with product scripting for a large block of diverse products, bringing all the data together into one system – with third party administrators, market data, product data, actuarial assumptions and cash flow engine parameters, other challenges included reconciliation and data scrubbing, test design and execution, resource planning and communications with senior management.

Unlike traditional insurance products in which insurance companies are able to comfortably quantify profitability metrics associated with the launching of a new product, identifying and working with such metrics for VA and FIA products can be very challenging. The speakers of this session will discuss challenges and issues relating to the pricing of these products.