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

Description: The article is a summary of Society of Actuaries report entitled “Annuity Market Pricing Approaches” sponsored by the Retirement Section Research Committee. The report examines the Canadian Institute of Actuaries (CIA) methodology of developing solvency valuation assumptions, compares it to methods used in the U.S., and considers if it could be used in other markets, such as U.S. group annuities or individual annuities

Description: Feature article discussing the variable annuity industry rebuilding and reinventing itself.

Description: The decrease in interest rates over the last several years has led to decreases in the maximum valuation rate and maximum nonforfeiture interest rate, and companies need to prepare for these changes.

Description: Discussion of the biases understatement of risk/reserves that arise when aggregating cells in modeling Variable Annuity Minimum Guaranteed Death Benefits

Description: A pension actuary and a life actuary collaborate to express public pension liability and asset issues in terms and figures that an insurer would use

Description: This paper considers the risk that actual mortality will be lower than the mortality assumed when pricing life annuities on impaired lives. It develops a method for managing this risk through a Provision for Adverse Deviation PAD.

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

Description: The objective of this article is to help indexed annuity writers understand the pricing practices and ALM strategies used by their peers in the industry, especially in light of the prevailing low interest rate environment and a possible rise in interest rates.