There has been increasing earnings pressure on the fixed and index annuity markets over the last several years, caused by increased competition and low interest rates. Historically, the use of reinsurance and Insurance Linked Securities (ILS) for fixed and index annuities has been limited. Thoughout the past several years, the availability and therefore prevalence of reinsurance has increased, resulting in reinsurance now being integrated in the development and/or pricing of new products. The presenters will cover fixed and index annuity reinsurance for both on and offshore arrangements, and the impacts this has had on the annuity market. There will also be a discussion on the ILS market for life and annuity risks which are focused on capital relief and financing transactions. At the conclusion of the session, attendees will be able to: • Understand the competitive landscape driving the use of reinsurance • Have a better understanding of the types of annuity reinsurance in the market • Develop strategies to apply reinsurance in annuity product development • Understand the landscape of the ILS market • Understand the basic mechanics of an ILS transaction • Understand its potential applications to the life and annuity segment This session is presented by the Product Development Section. |