Description: discussion of arbitrage possibilities cause by inconsistent mortality pricing assumptions in annuity products vis. a vis. life insurance products

Description: This article discusses an update to a survey that focuses on how companies are trying to price for and understand the risks inherent in the products they sell.

Description: This is an excel spreadsheet with some data pertaining to an article of the same name from the Product Development News

Description: NAIC Update on Issues Affecting Life and Annuity Product Development

Description: In actuarial work, we are frequently confronted with problems with more than one apparently reasonable answer. This article deals with one of these, where the Federal DAC cost can be applied in an apparently reasonable, but incorrect, manner.

Description: A high level review of IRR methodology, common issues in calculation, and IRR applications in insurance.

Description: Insurers are struggling to keep pace with rapidly changing economic conditions, customer needs and regulation. We at Oliver Wyman believe there is an opportunity for many insurers to generate more customer value and fuel their growth by rethinking their approach to Product Development.

Description: Since the last installment of the biennial WTW North America Life Insurance Pricing Methodology Survey in 2018, the market has been coming to terms with the prospect of “lower for even longer” interest rates and been confronted with the economic and social impacts of the COVID-19 pandemic. This article examines what effects these and market-specific factors have had on profit targets and pricing and reserving strategy. The survey looked at the profit objectives and assumptions used in pricing 2020 new issues of individual life and annuity products, with a focus on past practices, not future plans.

Description: Discussion of topics addressed at pricing methodologies seminar,including a review of the results of the Tillinghast Pricing Methodology Survey. This survey covers the most popular profit measures for various companies within various product lines. The concept of market consistent embedded value was also discussed, as well as a review of pricing indexed products. Finally, there were case studies presented on pricing Universal Life with Secondary Guarantees, Return of Premium Term and Variable Annuities with Living Benefits

Description: This article addresses the issues of short-term volatility, the non-equivalency of traders and, how product development is being impacted by market consistency.