Elizabeth Festa of National Underwriter had an article in the January 2012 edition entitled “Policyholders Getting Smarter, Leading to Charges for VA Products, Says Moody’s”. An excerpt from this article is:
In pricing and hedging the risks of their VA contracts, companies must also make assumptions about how many customers will hold on to their policies long enough to be eligible for benefit, how many of them will exercise guaranteed benefit options when they become available and how many more of them may exercise those options, the report explains.
Tim has written a white paper entitled “Modern Variable Annuity Risk Management”, which can be downloaded here. The paper describes the three key risks facing modern variable annuity companies — investment risk, insurance risk, and policyholder behavior risk — and how the Ruark Companies are uniquely positioned to help our clients develop and maintain integrated solutions to these risks. In particular, mortality in the accumulation phase and longevity in the guaranteed living benefit payout phase are large yet under-appreciated risks in the industry that prudently structured (and available!) reinsurance can mitigate. And regular installments of our industry-leading experience studies of policyholder behavior provide the profound and detailed insights that variable annuity companies need to effectively manage this risk. Please contact Tim if you would like to discuss how we can help you implement these solutions for your company.
2011 is starting off with a bang for the RCL dental practice, as I have plans for three industry studies during the year. First is the ever popular PPO Network Study. This will look and function much as it has in past years. I am expecting largely the same group of participating companies, with some exciting new additions. Details of the data request and timing will go out this week.
Rich Tucker was quoted in a Bloomberg News article, dated January 8, 2010, that discussed the emergence of Athene Life Re as a reinsurer focused exclusively on fixed annuities. A link to this article in Business Week follows.
Black’s Apollo Targets Fixed Annuities With Bermuda Reinsurer
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