2007 & 2008 Results for Policyholder Behavior in the Tail Risk Management Section Working Group Variable Annuity Guaranteed Benefits

Research Projects – Risk Management


The Joint Risk Management Section is trying to develop better estimates of policyholder behavior in the tail (PBITT). The mission of the PBITT working group is to examine and ultimately give guidance to actuaries on how to set policyholder assumptions in extreme scenarios.

As part of its work, the PBITT working group issued two follow-up surveys to its 2005 survey that gathered the range of assumptions actuaries use in pricing, reserving, and risk management of minimum guarantees on Variable Annuity products, such as death benefits, income benefits, withdrawal benefits and maturity benefits. The results of the surveys can be accessed at the following link:

Report

Policyholder Behavior in the Tail – Variable Annuity Guaranteed Benefits Survey/C3 Phase II – 2007 and 2008 Survey Results

Thank You

Thanks to the members of the PBITT working group for their help in issuing and reviewing the survey:

  • Jim Reiskytl, Chair
  • Stephen Hodges
  • Dale Hagstrom
  • Pete Bondy
  • Cliff Angstman
  • Steven Siegel, Staff Liaison

Special thanks to Stephen Hodges and Michael Altier for their analysis and drafting the report. The working group gratefully acknowledges all of the companies that participated in the surveys.

Questions Or Comments?

If you have comments or questions, please send an email to research@soa.org.