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Variable Annuities

Published online by Cambridge University Press:  10 June 2011

M. C. Ledlie
Affiliation:
Standard Life, 30 Lothian Road, Edinburgh EH2 1DE, U.K. Tel: +44(0)1312451003; Email: colin_ledlie@standardlife.com
Corresponding

Abstract

This paper provides a detailed overview of variable annuities. Consideration is given first to the definition of the term variable annuity. Common terminology used in the variable annuity market is introduced. The current state of the United Kingdom and other international markets is described. Then, by reference to a simplified product, an analysis of customer outcomes, pricing, reserving, risk management and hedging is carried out. The paper ends with a description of current U.K. pensions legislation and how it potentially constrains product development.

Type
Sessional meetings: papers and abstracts of discussions
Copyright
Copyright © Institute and Faculty of Actuaries 2008

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