Hedge Cost Update for FIA and RILA – April 2...
Hedge Cost Update for FIA and RILA products – 11-April 2024 FIA – 1 Year Here, we show the latest estimates of hedge costs of popular FIA designs. The hedge costs were obtained using market data of Thursday, April...
Combining Floor and Buffer
Cost Synergies with bundling RILA Floor and RILA Buffer Summary In this article, we suggest how insurers can save on hedging costs for RILA by taking advantage of the naturally synergistic relationship between RILA Buffer and RILA Floor product...
Using Strike Averaging to reduce hedging costs
Learn how to get extra savings in hedging costs for point-to-point cap payoffs using strike-averaging. This result applies only to FIAs that have point-to-point “capped” payoffs. In this analysis, we show that buying one point-to-point hedge (call spread) at the...
How to build a smart beta index
This article is targeted towards actuaries and risk managers working at insurance companies. This article must not be construed as investment advice or product recommendation. The recipe for building smart beta index is quite straightforward. Here it is: Step 1:...
What makes a smart beta index great?
This article is targeted towards actuaries and risk managers working at insurance companies. This article must not be construed by consumers as investment advice or product recommendation. Smart Beta As the name suggests, the beta needs to be smart (not...
Hello 2024
While we avoid making predictions for the future, some changes are highly anticipated. With these notes, we look to help our clients navigate the upcoming short-term and long-term changes effectively. AI and the longevity problem Extending human lifespan, as a...