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Why Are Indexed Annuity Par Rates So High?
Commentary April 04, 2024 at 11:54 PM
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What You Need To Know
- When interest rates fell, insurers began using volatility control indexes to cut option costs.
- Now, interest rates have popped back up and the volatility control indexes are still here.
- The result: Insurers have extra cash they can use to increase par rates.
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