Description: This article describes how option pricing theory can be used in everyday financial decision making, and provides examples applicable to the insurance industry.

Description: This article gives the highlights of the 88-page report including detailed assumptions for products including universal life with secondary guarantees (ULSG), cash accumulation universal life (CashAccum), current assumption universal life (CAUL), indexed universal life (IUL) and variable universal life (VUL). The 29 companies and 83 products represented in the report allow for an interesting perspective on premium persistency assumptions used in pricing, cash flow testing (CFT) and generally accepted accounting principles (GAAP)/international financial reporting standard (IFRS) functions. This article covers some general results and ULSG-specific results.

Description: A five-factor individual life expected profit formula is presented in this paper, with first-year lapse rate and amount of insurance as variables. The formula is appropriate for a single age-plan-sex cell.

Description: Author describes how he developed graduated policy-year withdrawal rates using crude withdrawal data that was available by calendar duration but that also was distorted by reporting lags.

Description: Feature article describing a simple and ready solution that allows a hedging program to operate effectively without risk of mismatch due to mortality fluctuations.

Description: NAIC Update on Issues Affecting Life and Annuity Product Development

Description: Relationship of IRR to ROI on a Level Term Life Insurance Policy

Description: This article discusses an update to a survey that focuses on how companies are trying to price for and understand the risks inherent in the products they sell.