ERM-405-14: Secondary Guarantee Universal Life - Practical Considerations


Reading Source:

Topics Covered in this Reading:

  • Executive Summary
  • Introductory Comments
  • Overview of the SGUL Market
    • Brief History of the Statutory Valuation Requirements
    • SGUL Product Design
    • The Effect of Product Features on Statutory Valuation Requirements
    • Competitive Environment
  • Production-oriented, traditional fixed SGUL
    • Product Design
    • Risks to Writing Company
  • Accumulation-oriented, traditional fixed SGUL
    • Pricing Results
    • Risks to Writing Company, Compared with Protection Product
  • Indexed UL and variable UL with secondary guarantee
    • Stochastic Pricing Results
    • Contrast Risks to Writing Company, Compared with Traditional Fixed Versions
  • Risk Management
    • Review of Risks to the Writing Company seen in Different Product Types
    • Discussion of Possible Risk-Mitigation Techniques
    • Discussion of the Results of Risk-Management Calculations
  • Principles-based reserves
  • Surplus relief arrangements
    • Types of Surplus Relief Arrangements