CFA Institute

  • 2007 - CFA Institute - The Future of Life-Cycle Saving and Investing - 198p
    • SESSION 4: INNOVATIVE PRODUCTS PANEL
      • 82-   - RIIA - Perspective of the Retirement Income Industry Association, by François Gadenne, CFA, Co-Founder and Chairman, Retirement Income Industry Association
        • The retirement income challenge requires the cooperation of people who have been buried in individual industry, business, or product silos.
        • ⇒ Investment advisers need to talk to actuaries, who need to talk to asset managers, who need to talk to derivative specialists, and so on.
        • The Retirement Income Industry Association (RIIA) was founded to give all interested parties an independent and objective place to facilitate such retirement income discussions.
      • Innovative Retirement Income and Old-Age Insurance Products: Insurance and Income Annuity Solutions, by Jerome S. Golden . .  . . . . . . . . . . 91
        • To address these risks, the financial services industry is repackaging existing products, developing new ones, and combining products. Following is a partial list:
          • Other insurance products. These include life insurance policies with special withdrawal features, variable deferred annuities with secondary income guarantees, and long-term care insurance.
        • The focus of this presentation is on income annuities, which were probably first offered in the United States in the 19th century. MassMutual sold its first income annuity in 1917.1
    • 96-Sustaining Retirement Income—Barriers and Dreams, by Anna Rappaport, President Anna Rappaport Consulting
      • 2005 - SOA - 2005 Risks and Process of Retirement Survey, Society of Actuaries - 112p
      • 101-102 - Expand product innovations. Ideas for innovations include the following:
        • Unbundled retirement annuities.
        • Unbundling annuity assets would facilitate thinking of annuities in a manner similar to how the market thinks about universal life insurance.
        • Universal life unbundles life insurance by separating out the accumulation amount (the investment component) from the cost of life insurance (the death benefit component).
        • An annuity could similarly be unbundled by setting it up as an accumulation account with an added “dividend” paid to survivors to reflect the mortality credits that have been earned (the value of survivorship). That is, the accumulation for those who die is redistributed to those who continue as participants. This structure would help open the way to other innovations.
  • Unbundled retirement annuities. Unbundling annuity assets would facilitate thinking of annuities in a manner similar to how the market thinks about universal life insurance.
  • Universal life unbundles life insurance by separating out the accumulation amount (the investment component) from the cost of life insurance (the death benefit component).  (p102)

2008 - CFA Institute - The Future of Life-Cycle Saving and Investing, Second Edition - 206p