Description: New Zealand is about to launch its first variable annuity with guaranteed lifetime withdrawal benefits. The product design is mindful of the lessons from the financial crisis in the United States, Europe and Japan.

Description: This paper first derives the fair participation rate based on a fair value of the equity-indexed annuity EIA. Then using risk measures, a new participation rate is obtained, based on the tail loading of the hedging error distribution. Risk management strategies reducing risk related to the hedging error are also presented. A detailed numerical analysis is performed for a point-to-point EIA.

Description: This session from the 2003 Washington D.C. Spring Meeting discusses a variety of risks that need to be considered in pricing life and annuity products. This session also reviews the results of the Risk Management Task Force Survey including how companies were measuring profit, how they were reflecting risk in pricing, how results were analyzed and how specific risks were being modeled. From the Record of the Society of Actuaries, Volume 29, No. 1, Session 7PD.

Description: Interest sensitive products including SPDAs can be thought of as spread lending business. The purpose of the paper is to introduce the excess spread approach to measuring the profitability of nonparticipating insurance products. The article describes how the excess spread approach is used to price and manage the products and its risks. From Society of Actuaries Reporting Monograph, M-AS99-1.