ERM-416-19: Responding to the Variable Annuity Crisis



Reading Source:

Topics Covered in this Reading:

  • Introduction
  • Prelude to the Crisis
    • “Arms Race” on Living Benefits
    • Aggressive Asset Allocation
    • Continued Shift Toward Third-Party Distribution
    • Broad Adoption of Dynamic Hedging and Self-Insurance as Re-Insurance Capacity Dried Up
  • The Variable Annuity Industry Faces the Crisis
    • Risk Hedging Programs Work… But Only to a Certain Extent
    • Unmitigated Risks are Exposed
    • Not All Carriers are Created Equal
  • The Future of the Variable Annuity Market
  • Winning in the Tail
    • Assess Risk Exposures
    • Develop a Short-Term Risk Mitigation Plan