This book by Ermanno Pitacco, aims to provide the reader with answers to some fundamental questions regarding life annuities and post-retirement income. Readers will understand the specificity of life annuity products with respect to other products from both the insurer’s and the annuitant’s perspective.
Life annuities continue to be important products, even more so now in a low interest rate environment. Annuities markets have seem huge innovation, with new ideas are under development. The global trend away from defined benefit pension plans to defined contribution pension plans has emphasised the importance of annuities, as a way of delivering pension income in a defined contribution setting.
Considerable attention is currently being devoted in insurance work to the management of life annuity portfolios and to annuity product design, because of the growing importance of annuity benefits paid by private pension schemes and individual policies.
This book by Ermanno Pitacco, will help practitioners to benefit from these new and innovative ideas. The book aims at providing the reader with answers to some fundamental questions regarding life annuities and post-retirement income. What is the individual longevity risk? What is an annuity and what is a life annuity? Why and when a life annuity should be purchased? How should life annuity design be improved to enhance voluntary annuitisation?
Readers will understand the specificity of life annuity products with respect to other products sold by life insurance companies, from both the insurer’s and the annuitant’s perspective. The author will highlight the mix of financial features (yield from investments, interest rate guarantee) and insurance features (protection against the individual longevity risk), which can be recognised in life annuity products. Numerical examples will help in understanding significant features of life annuities.
The book is essential reading for all practitioners (actuaries, accountants, asset managers) in the field of life insurance and pensions. Also, students and lecturers in actuarial sciences, economics, business economics, finance.