Credit Implications of the Payout Annuity Market

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Abstract

Our paper will examine the growth prospects and accompanying risks for the insurance industry in the payout annuity marketplace. By answering market demands in the payout annuity market and providing equity market participation with downside protection over the life of an annuitant, an insurance company exposes itself to a number of risks. We examine potential risk management solutions, including reinsurance, insurance securitization and self-insurance by the pool participants.

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2002-01-01

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The published version of this Working Paper may be found in the 2003 publication: The Pension Challenge: Risk Transfers and Retirement Income Security (https://pensionresearchcouncil.wharton.upenn.edu/publications/books/the-pension-challenge-risk-transfers-and-retirement-income-security/).

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