Description: Competition for space in distribution channels has resulted in a proliferation of exotic options embedded in variable annuity products. This article discusses how this has created a need which can be addressed, in part, by hedging variable annuity guarantees with long-dated equity derivatives.

Description: This session from the 2003 SOA Orlando Meeting covers economics, investment-related assumptions for use in long-term models and how to determine those investment-related assumptions. From the Record of the Society of Actuaries, Volume 29, No. 3, Session.