Description: The decrease in interest rates over the last several years has led to decreases in the maximum valuation rate and maximum nonforfeiture interest rate, and companies need to prepare for these changes.

Description: This study is designed to analyze new planning approaches and strategies that combine SPIAs with other techniques to create retirement income synergies. Using historical scenarios, it evaluates how different retirement income strategies hypothetically would have met four separate client goals: sustainable income, liquidity, accessibility and legacy. This report summarizes study findings and includes “planning points” to help readers interpret the study data.

Description: This abstract describes a paper that derives a simple explicit solution for an efficient portfolio with positive weights.

Description: This abstract describes a paper that implements a lifetime utility model including both GMDB options and term life insurance and allowing the policyholder to optimize both consumption and fund allocation decisions.

Description: This abstract describes a paper that generalizes the Poisson process to a renewal process, especially Erlang (n) renewal processes.

Description: This paper proposes weighted fund style analysis as a better method to hedge market risks of variable annuities.

Description: discussion of the ongoing developments in reserving and risk-based capital RBC requirements for variable annuities including stochastic scenario projections

Description: The Actuary Vol. 22, No. 2. This article discusses how the the choice of basis for measuring Interest Rate Spread impacts pricing and accounting for interest sensitive products.

Description: The American Academy of Actuaries will present on current initiatives that impact the U.S. statutory reserving methodology for non-variable annuity contracts. In particular, the development of a principle-based reserving framework on non-variable annuity contracts will be discussed, including framework elements, assumptions, and methodology. The session will provide an update on the status of regulatory discussions and the timeline for future changes to reserves. By the end of the session, attendees will understand what changes are being made to non-variable annuity reserves, details underlying existing proposals, and the anticipated timing of such emerging changes. This session is intended to the meet the needs of actuaries focused on annuity reserve calculations, financial reporting, and valuation.

Description: In this article, the author discusses the capital shortfall an insurer faces because of the longevity risk on immediate annuities.