Description: Life and annuity markets around the world have seen increasingly complex investment-combined products, including universal life, fixed indexed annuities, variable annuities with a wide variety of guaranteed benefits, indexed variable annuities, etc. Insurance companies are facing unprecedented exposure to financial risks in addition to traditional mortality and longevity risks. The risk assessment and modeling for such complex designs by conventional methods often focus heavily on their market competitiveness and profitability. However, there seems to be a lack of quantifiable and systematic approach to assess investment risks associated with investment combined products. The objective of the proposed work is to develop a framework for quantifying and analyzing various forms of contractual designs and showcase different techniques to assess the trade-off between competitive contractual designs and their practical implications with regard to the difficulty of risk management.

Description: Improve pharmacy cost forecasting by developing induced demand curves for pharmacy costs.

Description: Discussion of topics addressed at pricing methodologies seminar,including a review of the results of the Tillinghast Pricing Methodology Survey. This survey covers the most popular profit measures for various companies within various product lines. The concept of market consistent embedded value was also discussed, as well as a review of pricing indexed products. Finally, there were case studies presented on pricing Universal Life with Secondary Guarantees, Return of Premium Term and Variable Annuities with Living Benefits

Description: Discusses the influence of market-consistent pricing proponents.

Description: This article addresses the issues of short-term volatility, the non-equivalency of traders and, how product development is being impacted by market consistency.

Description: Outline of modifications to formulas in previously released FORTRAN program to compute two-life annuities, including those designated 'qualified joint and survivor annuities' in the ERISA Act of 1974.

Description: The Actuary Vol. 22 , No. 7. This articles explores the dangers posed by many guaranteed-return life insurance and annuity products.

Description: Risk based pricing addresses some of the shortcomings of traditional pricing methods by providing a framework for understanding the tradeoffs between shareholder risks and rewards using a robust, transparent and objective economic methodology that is consistent across products.

Description: This paper studies how changes in the fractions of various groups of individuals, the survival probabilities of various types and the attitudes towards risks of the customers affect the equilibrium price of annuity contracts. From the Actuarial Research Clearing House ARCH 1989 Vol. 2.

Description: Life and annuity markets around the world have seen increasingly complex investment-combined products, including universal life, fixed indexed annuities, variable annuities with a wide variety of guaranteed benefits and indexed variable annuities. Insurance companies are facing unprecedented exposure to financial risks in addition to traditional mortality and longevity risks. The risk assessment and modeling for such complex designs by conventional methods often focus heavily on their market competitiveness and profitability. However, there seems to be a lack of quantifiable and systematic approaches to assess investment risks associated with investment combined products. The objective of the proposed work is to develop a framework for quantifying and analyzing various forms of contractual designs and showcase different techniques to assess the trade-off between competitive contractual designs and their practical implications regarding the difficulty of risk management.