Kobayashi, Takao; Ikeda, Ryoichi; Hasegawa, Yoichiro - Center for International Research on the Japanese … - 2003
In this paper we propose a framework to evaluate variable annuities. We show that the invested capital to a variable annuity can be decomposed into: (i) the reserve money in the account, (ii) options, (iii) fees paid to the mutual fund companies, and (iv) margin accruing to the insurance...