Description: Two-and-a-half years ago the British Government started to issue index-linked securities-the redemption value and coupon both increase with the UK Consumer Price Index, but the value before redemption is determined by the stock market. Initially this was done in a small way and offered to a restricted group of investors pension funds, but now anybody can hold these securities. This article discusses the possibility of insurance companies using these securities to issue annuities that would increase with the UK Consumer Price Index.