Variable Annuity Guaranteed Living Benefits Utilization: 2015 Experience

By Matthew Drinkwater, Todd Giesing, Jafor Iqbal and Eugene Noble · Society of Actuaries and LIMRA · 2018

Study guide: Exam ILA-101

A 2018 participants' report of a joint study sponsored by the Society of Actuaries and LIMRA, covering 2015 experience. It examines how variable annuity owners use their guaranteed living benefits (GLWBs, GMWBs, GMIBs and GMABs), drawing on over 4.9 million contracts issued during or in force as of 2015 from 20 participating insurers, and is an update of earlier investigations conducted since 2006.

On the syllabus

• Exam ILA-101 — Executive Summary only (pp. 19-32); outcomes 2b.

About the Study

Executive Summary

• Starting Withdrawals
• Method of Withdrawals
• Percentage of Benefit Maximum Withdrawn
• Surrender Rates
• Action Steps and Issues to Consider
• Guaranteed Lifetime Withdrawal Benefits (GLWBs)
  • Owner Profiles
  • Benefit Base
  • Withdrawal Activity
  • Additional Premium and Net Flows
  • Persistency
  • Product and Benefit Characteristics
• Guaranteed Minimum Withdrawal Benefits (GMWBs)
  • Owner Profiles
  • Benefit Base Balance
  • Withdrawal Activity
  • Additional Premium and Net Flows
  • Persistency
  • Product and Benefit Characteristics
• Guaranteed Minimum Income Benefits (GMIBs)
  • Owner Profiles
  • Benefit Base
  • In-the-Moneyness
  • Annuitization
  • Withdrawal Activity
  • Additional Premium and Net Flows
  • Persistency
• Guaranteed Minimum Accumulation Benefits (GMABs)
  • Owner Profiles
  • Benefit Base
  • Benefit Maturity
  • Withdrawal Activity
  • Additional Premium and Net Flows
  • Persistency
  • Product and Benefit Characteristics

Chapter One Guaranteed Lifetime Withdrawal Benefits

Chapter Two Guaranteed Minimum Withdrawal Benefits

Chapter Three Guaranteed Minimum Income Benefits

Chapter Four Guaranteed Minimum Accumulation Benefits

Appendix A About the Survey

Appendix B

Appendix C

Sources

• Variable Annuity Guaranteed Living Benefits Utilization, 2015 Experience, Participants' Report (SOA and LIMRA, 2018) — the document: title page (project team, date, sponsors), About the Study for the lead, the contents page, and the Executive Summary's sub-headings (pp. 19-32); the report is titled 2015 Experience and the syllabus calls it a 2018 report
• ILA 101 Syllabus, Nov 2026/Mar 2027/Jul 2027 (SOA) — the citation, its assigned pages and learning outcomes