Centro de Documentacion de Fundación MAPFRE - State-dependent fees for variable annuity guarantees

MAP20140046034

State-dependent fees for variable annuity guarantees / Carole Bernard, Mary Hardy, Anne Mackay

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

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

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