Description: How can actuaries innovate solutions to the challenges posed by policyholder behavior risks?

Description: Examination of full surrender and benefit utilization industry experience for Variable Annuities with and without Guaranteed Lifetime Withdrawal Benefits. Part 1 of 3 articles focuses on full surrenders and building a dynamic surrender function using predictive modeling tools.

Description: Results of the PBITT Working Group annual VA survey.

Description: Social Security provides financial protection by annuitizing retirement. This is not enough for many. My idea creates an additional annuity via Social Security.

Description: Retirement income security under defined contribution plans depends upon sufficient savings and decumulating that savings so it provides an adequate income throughout retirement. Investment risk and longevity risk inherently complicate the latter task. The economic rationale for annuitization is clear in this context. However, annuitization rates have historically been very low, a phenomenon that is still not well understood. If retirees are making “rational” decisions based on full information, if their choices are consistent with the pursuit of their financial priorities, then low annuitization rates are not an issue for concern. In this case, retirees who annuitize and retirees who do not must have different financial priorities. However, research by the TIAA Institute shows that the decision to not annuitize is inconsistent with the stated financial priorities of most non-annuitants. It appears that non-annuitants do not und erstand that annuitization would address their financial priorities for retirement.

Description: Results of the PBITT Working Group annual Variable Annuity Survey.

Description: This article examines the development of the new Brazilian annuitant mortality table, and explores the current and future effects of this table.

Description: New Zealand is about to launch its first variable annuity with guaranteed lifetime withdrawal benefits. The product design is mindful of the lessons from the financial crisis in the United States, Europe and Japan.

Description: The insurance industry has a lot to learn from academia's missteps. With predictive analytics assuming an ever-expanding role in risk modeling, carriers would be well-served to establish practices that mitigate the creation of faulty models. Hear practical advice on how to mitigate the risks of overfitting, with a focus on how to translate complex policyholder behavior experience data for long-term products into behavioral models using company- and industry-level data.

Description: As part of its work, the PBITT Working Group issued its seventh survey to gather the range of assumptions actuaries use in pricing, reserving, and risk management of minimum guarantees on Variable Annuity products, such as death benefits, income benefits, withdrawal benefits and maturity benefits.