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State-dependent fees for variable annuity guarantees

Recurso electrónico / electronic resource
Section: Articles
Title: State-dependent fees for variable annuity guarantees / Carole Bernard, Mary Hardy, Anne MackayAuthor: Bernard, Carole
Notes: Sumario: For variable annuity policies, management fees for the most basic guarantees are charged at a constant rate throughout the term of the policy. This creates a misalignment of risk and income the fee income is low when the option value is high, and vice versa. In turn, this may create adverse incentives for policyholders, for example, encouraging surrenders when the options are far out-of-the-money.Related records: En: Astin bulletin. - Belgium : ASTIN and AFIR Sections of the International Actuarial Association = ISSN 0515-0361. - 01/09/2014 Volumen 44 Número 3 - septiembre 2014 Other categories: 6
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