“Almost every major variable annuity writer has absorbed large write-downs on ‘policyholder behavior assumption updates,’” said a Munich Re executive. “So how do we take out that risk?”
At the Society of Actuaries Equity-Based Insurance Guarantees conference in Chicago this week, the use of 'predictive modeling' to unearth buried or cryptic data was strongly encouraged.
With his new venture, ReLIAS LLC, the well-known retirement scholar-turned-entrepreneur Mark Warshawsky plans to market a process for helping retirees build ladders of single premium immediate annuities with part of their savings.
Whether you'd prefer the new Dimensional Target Date Retirement Income Funds over one of the "big three" TDFs might depend on whether you share Robert Merton and Zvi Bodie's belief that stocks aren't necessarily safe in the long run. (Photo: Merton explaining the Black-Scholes-Merton options pricing model in 1977.)
Investors returned to high-yield bonds in November after preferring government bonds for several months. “Investors might be trying to anticipate the potential December interest-rate raise,” wrote Morningstar analyst Alina Lamy.
Fidelity Investments is testing 'Fidelity Go,' a robo-advice portal aimed at Millennials, and building a digital interface between its affiliated advisors and its clearing service to replace the interface that Betterment Institutional provided until recently.
Total third quarter sales of indexed annuities were $13.8 billion, up 13% from the previous quarter, and up nearly 21% from the same period last year.
Only 1.8% of DC plan participants stopped contributing in the first half of 2015, compared with 2.1% in the first half of 2014.
"After years of bolstering their balance sheets, life-annuity firms are in a strong position to invest in the innovations and technologies needed to fuel growth," said Doug French, principal, Financial Services and Insurance and Actuarial Services at Ernst & Young LLP.