Club Vita: Where Levity Meets Longevity Risk

The cartoon characters in hazmat suits on Club Vita's website handle "toxic waste." It's a metaphor for the actuarial consultancy's real service: helping the remaining DB plans in the UK deal with longevity risk.

Research Roundup

We summarize four recent papers: 'Portfolios for Long-Term Investors,' 'What is the Value of Annuities?,' 'Public Economics and Inequality: Uncovering Our Social Nature,' and 'Financial and Total Wealth Inequality with Low Interest Rates.'

An Annuity’s ‘Moneyness’? There’s an App for That

How will variable annuity contract owners use their income benefits? That question is vital to annuity issuers and to fiduciary advisers with clients who own VAs. This Texas Dep't of Insurance actuary knows a product that can help them find out.

A Chip Off the Old Rock?

Bloomberg reported this week that Prudential is considering selling its retirement plan recordkeeping business. Prudential didn't confirm the report, but several industry insiders did. Low interest rates, high costs of IT makeovers, and sticky stable value fund guarantees are driving the move, RIJ was told.
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Of Ponies, Manure Piles, and Annuities

An article about deferred income annuities in last Saturday's New York Times looked at DIAs through the "investment frame" rather than the "insurance frame." That's the wrong way to evaluate annuities.

The Interest Rate Enigma

"The accumulation of debt and the distortions in production and investment patterns induced by persistently low interest rates hinder the return of those rates to more normal levels," write these officials of the Bank of International Settlements and the Bank of Thailand.
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