Markets specialists make push into VA modelling

Actuarial system vendors face growing competition


It is well known that hedging variable annuities (VAs) presents a challenge because of the complexities of the embedded options within the products. Losses on the products following the financial crisis made insurers take a second look at their hedging strategies. Since then, VA hedging has evolved further, particularly in the US where insurers are increasingly interested in not only the economic risk inherent in their VAs, but also the impact on capital and earnings at risk. Now, insurers are l