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.
Ruark Consulting is an Event Sponsor at the Equity-Based Insurance Guarantees Conference taking place in Chicago on November 14 & 15, 2011. Tim Paris is the presenter on November 15 of “Policyholder Behavior Trends, Dynamics & Cohorts for VA’s and IA’s”. Stop by and see Tim and his associates. More information on the conference can be found at the SOA website at:
SOA Equity-Based Insurance Guarantees Conference
Tim Paris’ presentation at the SOA Annual Meeting on Managing Longevity and Mortality Risks is available here. Longevity risk is an under-appreciated risk in variable annuity guaranteed living benefits. Tim welcomes comments and discussion.
Tim Paris – Managing Longevity and Mortality Risks
Rich Tucker, Tim Paris and Steve Wright will be attending the 2011 SOA Annual Meeting in Chicago on October 17, 18, and 19. Let us know if you will also be there.
Tim Paris will be a presenter at session 73 – Managing Longevity and Mortality Risks and Their Global Activities. The SOA website does not show Tim’s participation, but we know better.
Reinsurance programs in the annuity and life insurance market are common and are intended to provide value to both the Ceding Company and the Reinsurer. The negotiation and placement of reinsurance programs receive significant and high level staff commitments. Thereafter, ongoing administration will affect the coverage and value of the reinsurance program. There are common administrative pitfalls that will impact the value of a reinsurance program if not tended to with proper care. Ruark Consulting has the experience and capabilities to avoid these administrative pitfalls.
Superior reinsurance administration should address the following:
Fixed annuity and indexed annuity reinsurance is a market where Ruark Insurance Advisors has significant experience, along with variable annuities and life insurance. This article reviews the basic parameters that a direct writer should understand in order to evaluate the applicability of fixed and indexed annuity reinsurance to their situation.
Annuity reinsurance is a tool to manage required capital, surplus strain and a company’s balance between asset risks and insurance risks. Limiting sales volumes can achieve similar results but may conflict with strategic needs to maintain or grow sales volumes and to enhance relationships with distributors.
Ruark Insurance Advisors has the capability to help our clients structure, price and place life reinsurance Aggregate Stop Loss programs. We use our stochastic mortality model to evaluate the mortality fluctuation risk of your business. From this analysis, the Attachment Point and Claim Limit can be chosen to provide the risk coverage desired, at the price acceptable to the Ceding Company. Ruark Insurance Advisors then places the reinsurance program with reinsurers acceptable to the Ceding Company. A more detailed description of these programs can be found at:
Life Reinsurance Aggregate Stop Loss Programs
Rich Tucker and Tim Paris’ article entitled “State of the Variable Annuity Reinsurance Market” has been reproduced in the January 2011 newsletter of the Society of Actuaries Reinsurance Section. The newsletter can be found at:
Reinsurance News January 2011
Tim Paris will be a presenter at the SOA Investment Symposium on April 11-12, 2011 in New York City, as part of the session “Variable Annuities – 24 Months Later”. Tim will be addressing the topic of variable annuity policyholder behavior during the financial crisis.
Tim will also be a presenter at the Insights into the Pricing of Policyholder-Related Assumptions Seminar on May 18, 2011 in New Orleans, where he will also be addressing variable annuity policyholder behavior.
Jan Soppe of Strategic Health Management authored an article in the October 2010 issue of Life Insurance Selling that discussed the path to success for Combo products, addressing annuity & long term care combos as well as life insurance & critical illness combos. The article can be accessed here:
Combo Products: Where is the Path from Potential to Reality
Ruark Consulting works with Strategic Health Management to provide the necessary combo product expertise to our clients, naturally aligning our annuity and life insurance knowledge with Strategic Health Management’s long term care and critical illness knowledge. Let us know if you’d like an introduction to Jan and her colleagues.
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