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...
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...
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,...
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...