Description: The last few years have seen a dramatic change in the way that insurance products are priced. If we traveled back in time 15 to 20 years, we would see a world where most insurance products were priced on the basis of a few static scenarios. In the last several years, pricing on a stochastic basis has become more mainstream—at least for contracts with embedded guarantees.

Description: Profitability of traditional life and health products has long been considered less sensitive to changes in interest rates than profitability of universal life, SPDAs, or other “interest-sensitive” products. Consequently, traditional products have often been priced with a single deterministic interest scenario.

Description: In session 139PD of the Washington Annual Meeting panelists discuss emerging issues impacting the pricing of individual life and annuity products. From the Record of the Society of Actuaries, Vol. 23, No. 3.