“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?”
Franklin Templeton SVP Drew Carrington says his firm's Defined Maturity Funds, which work like bond ladders, could provide retirement income for 401(k) participants, and could be paired with qualified longevity annuity contracts.
A mortality and longevity expert at Willis Towers Watson writes that 'the variability of the mortality impact by age makes the impact highly variable by type of insurer.'
Negative real interest rates have become a disincentive to personal savings, especially among lower-income Americans who will rely heavily on Social Security and Medicaid anyway, this team of economists from Stanford suggests.
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.