Reinsurance Add-on

Although most experts familiar with the reinsurance market for these VA s with guarantees, a few industry players have considered entering the market to fill a growing need among direct writers (see NU, Jan.26, 2004.)

What is important, according to these experts, is to properly model the risks associated with these guarantees by using credible, quality data. That data could include characteristics such as age and asset allocation within a contract’s subaccounts.