Over the last several years, many insurance companies have fundamentally changed the ways they manage volatility risks of their Variable Annuity (VA) and Indexed Annuity (IA) products. The dramatic increases in implied volatilities during the financial crisis forced them to re-examine their volatility risk management approaches, leading not only to improved volatility hedging programs but also to major innovations in product designs.

In this webinar, recorded on Wednesday, May 29, 2013, Stephen Stone of AIG Life and Retirement and Mark Hadley of Numerix discussed recent trends and best practices in the volatility management of equity-based insurance guarantees.

Mr. Stone and Mr. Hadley discussed the following topics:

  • Introduction to equity-based insurance guarantees

  • New VA product designs including volatility control products, and VIX-linked structures

  • Volatility profiles of equity-based insurance guarantees, with and without new designs

  • How insurance companies manage volatility risk

  • Examining the robustness of different target volatility strategies, and comparing them to fee-indexed designs

  • Quantifying how target volatility strategies and fee-indexing strategies transform the Guaranteed Lifetime Withdrawal Benefit (GLWB) risk profile

  • Additional facets of volatility to consider

To view the on-demand webinar, just register on the right side of this page.

Featured Speakers:

Stephen Stone, FSA, CFA, FRM, AIG Life and Retirement
Mr. Stone is a Senior Vice President at AIG Life and Retirement where he is responsible for managing dynamic hedging programs for Variable and Index Annuities. He has extensive derivatives management experience, including 17 years using dynamic hedging techniques on both insurance products and OTC derivatives at a number of financial services companies. Mr. Stone has a BA from Columbia College and MS degrees from NYU Business School and the University of Chicago.

Mark Hadley, FSA, CFA, Vice President, Financial Engineering, Numerix
Mr. Hadley has worked with numerous variable annuity insurers across the industry, whose exposure spans all corners of the globe. He specializes on the capital markets side focusing on financial market modeling, hedge strategy design, and hedge execution. In his current role with Numerix, he consults with banks, hedge funds, and insurance companies across the globe on how to manage exotic derivative exposure. Prior to Numerix, Mr. Hadley worked with Milliman’s Financial Risk Management group, where he designed and executed several VA and EIA hedging strategies.

Moderator: Jim Jockle, Chief Marketing Officer
Mr. Jockle leads the company's global marketing efforts, spanning a diverse set of solutions and audiences. He oversees integrated marketing communications to customers in the largest global financial markets and to the Numerix partner network through the company's branding, electronic marketing, research, events, public relations, advertising and relationship marketing.

Prior to joining Numerix, he served as Managing Director of Global Marketing and Communications for Fitch Ratings. During his tenure at Fitch, Mr. Jockle built the firm’s public relations program, oversaw investor relations and led marketing and communications plans for several acquisitions. He also oversaw the brand development of a new company dedicated to the enhancement of credit derivative and structured-credit ratings, products and services. Prior to Fitch, Mr. Jockle was a member of the communications team at Moody's Investors Service.

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