Annuity Market: Better Days Ahead
Introduction Higher rates are unarguably the best thing to happen to the annuity market. Many of us don’t realize that the much larger size of the annuity market in the US, compared to the UK or Europe, is very much...
Inflation Protected Annuities
Summary In this analysis, we attempt to create an inflation-protected annuity by adding an increasing annuity to a level annuity. Increasing annuity’s annual benefit increases as {k, 2k, 3k, …} and so on. Final annual benefit amounts are {b+k, b+2k,...
Fixed Indexed Annuity : Insurers rely on asset ret...
Summary Our base case scenario is that of high nominal rate (5 YR Corporate AA yield 4%), average asset income (5.75%) and single digit equity returns (7-9%). Our analysis suggests excellent Fixed Annuity and Fixed Indexed Annuity returns for both...
Unrewarded Risks
Unrewarded Risks Policyholders care most about the guarantees they receive and the price they pay for those guarantees. In other words, they want the best quality insurance policies at the lowest prices, which is no secret. What they don’t care...