Legacy variable annuity portfolios have come back to par making it less expensive to hedge this risk than previously
Low interest rates and high-profile hedging losses saw Japan insurers and consumers fall out of love with variable annuities but, as sales rebound, the industry says it's on top of the risks posed by these...
Regulator introduces new risk monitor to scrutinise market risks and act as early-warning indicator
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More Variable annuities articles
As insurers look for ways to improve the speed of their modelling calculations, some are turning to microprocessors originally developed for computer graphics in games consoles to increase calculation times. But while graphical processing units can achieve...
Uncertain global economic conditions mean that consumer demand for variable annuity products remains high. Yet these same economic conditions make the hedging of the embedded guarantees more challenging, while the steps taken by regulators to constrain...
Warren Buffet once famously described derivatives as “financial weapons of mass destruction”. The ‘Sage of Omaha’, in one of his annual letters to shareholders in his Berkshire Hathaway company, described derivatives as “time bombs”, both...
Regulators are targeting insurers’ use of variable annuities and insurance-linked securities in their fight against global systemic risk. But insurers say these products are fundamental to the way the insurance industry works. Louie Woodall reports...
Industry think-tank rejects product’s designation as a non-traditional, non-insurance activity
Traditional models for wrong-way risk focus on the correlation between default and exposure – a blunt tool for a tail risk. Alternatives are thin on the ground, but a scenario-based approach may provide some fresh insight. Laurie Carver introduces this...
In response to industry fears of a collateral crunch, regulators have revised the proposed rules on margining for uncleared over-the-counter (OTC) derivatives.You can find out more by downloading this white paper here.
Topics of interest
Hong Kong, 1st - 31st Dec 2014
Japan, 24th Apr 2014
Japan, 24th Apr 2014
USA, 30th Apr 2014
USA, 8th - 9th May 2014