Annuity Design & Risk Management
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Ruark Insurance Advisors, Inc. (RIA) specializes in the design and risk management of ancillary product features such as Guaranteed Minimum Death Benefits, Earnings Enhancement Benefits, Guaranteed Minimum Income Benefits, Guaranteed Minimum Withdrawal Benefits, Guaranteed Minimum Account Value Benefits, and Guaranteed Payout Annuity Floors.
Many of our unique reinsurance programs are tailored specifically to the variable market. One example is the Deferred Stop Loss program (DSL) for which a patent is pending. This program recognizes the long-term nature of the guaranteed minimum death benefits, the inherent volatility of the equity markets, and the need for direct writers to avoid large fluctuations in earnings.
RIA has also designed programs that reinsure two different guaranteed benefits within one package. In these instances, the two benefits react differently to changes in stock market performance. This results in lower reinsurance premiums for the package than for the two products individually reinsured.
Fixed Annuities
Fixed annuities retain a significant market share, regardless of the external interest rate environment. Many companies maintain a position in this market but prefer to modify the risk profile. RIA has developed reinsurance strategies to implement risk sharing that provide capital relief either with or without sharing deferred acquisition costs.
Equity Indexed Annuities
The equity indexed annuity marketplace is rapidly growing, increasing market share in leaps and bounds. A company wishing to enter this marketplace must develop unique skills and capabilities for product management and administration. RIA is uniquely positioned to provide solutions to our clients, including:
- Reinsurance approach for the funding of equity participation as an alternative to establishing a capital markets hedging program
- Availability of administrative outsourcing
- Existing relationships with marketing and distribution consultants to provide a coordinated, multi-disciplinary approach for entry into the EIA marketplace.
