Policyholder Behavior in the Tail Risk Management Section Working Group Variable Annuity Guaranteed Benefits Survey Results

Research Projects – Risk Management

The Joint Risk Management Section is trying to develop better estimates of policyholder behavior in the tail (PBITT). The mission of the PBITT working group is to examine and ultimately give guidance to actuaries on how to set policyholder assumptions in extreme scenarios.

As part of its work, the PBITT working group issued a survey that confidentiality gathered the range of assumptions actuaries use in pricing, reserving, and risk management of minimum guarantees on Variable Annuity products, such as death benefits, income benefits, withdrawal benefits and maturity benefits. The results of the survey can be accessed at the following link:

The PBITT Working Group would encourage and welcome comments, questions, and suggestions. Please send them to either James Reiskytl or Steven Siegel.

Special thanks to Mike Altier and Stephen Hodges of the Working Group for creating much of the survey results summary and narration.