Variable annuities
Purpose
A variable annuity is a unit linked product which offers potentially high yields and guarantees. This allows having a secured investment. There are several types of guarantees such as Guaranteed Minimum Death Benefit, Guaranteed Minimum Accumulation Benefit, Guaranteed Minimum Income Benefit and Guaranteed Minimum Withdrawal Benefit.
Variables annuities may be considered as alternatives to other life insurance contracts. Widespread in the US and in Japan, similar products are also being launched in continental Europe.
Challenges
Using variable annuities requires a deep knowledge of the derivative capital market, prudent financial risk management and skills in all the processes involved in a hedging program.
Deloitte services offering
Deloitte can help to:
- Make market analysis,
- Design, market and sale products,
- Assess and manage risks linked to variable annuities and define a risk management framework.
Material on this website is © 2012 Deloitte Global Services Limited, or a member firm of Deloitte Touche Tohmatsu Limited, or one of their affiliates. See Legal for copyright and other legal information.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.