Non-traditional Life Insurance Products with Guarantees provides an overview of all of the relevant aspects of these investment and retirement products from an insurer’s and pension plan’s perspective and offers practical and theoretical advice. The editors have brought together a team of authors from the industry, resulting in a practical and essential text for any insurer.
Part 1: Environment
- Low Interest Rate Environments and consequences
- Risks faced by writers of investment guarantees
- Variable Annuity in Asia post 2008
- How did Variable Annuities Fare in the Crisis?
- Capital light products - the holy grail (title tbc)
- An overview of regulatory requirements
Part 2 - Modelling
- Economic Scenario Generators and Variable Annuities
- Modelling and Managing policyholder behavioral risks
- Modelling and Managing mortality and longevity risks
- Valuation of Variable-Annuity Guarantees
Part 3 - Risk Management
- Understanding and using reinsurance treaties for guaranteed products
- Hedging of Long Term Fund Linked Exotic Options
- Overview of commonly used risk-management strategies
- Taxinomy of equity, interest rate, hybrid and customised derivatives used for risk management
- Managing risks underlying a VA liability
- Basis Risk
- Measuring hedge Effectiveness
- Measuring and reporting hedge efficiency
- 8 Important Questions Practitioners Should Ask When Managing Equity Linked Insurance Guarantee Risks
Kannoo Ravindran (Ravi). Since pioneering the use of derivatives to manage market risks embedded in variable annuities at a time when writers of such risks used only traditional reinsurance/retrocession or took on the risks naked, Ravi has been working on all aspects of variable annuity risk-management (including managing such risks on a total account value exceeding USD 100 billion) and product development. Ravi is currently President and CEO of Annuity Systems.