Malcolm Life Enhances its Variable Annuities

Posted: 5 Apr 2012  

Robert Pozen

Massachusetts Institute of Technology, Sloan School of Management, Students; Brookings Institution

David Pearlman

affiliation not provided to SSRN

Date Written: December 15, 2010

Abstract

The case involves an insurance CEO choosing between different designs for a variable annuity product in light of hedging, marketing, and pricing issues. The case provides students with background on the economics and regulation of life insurance and variable annuities. Then it asks students to calculate the returns on capital of different product designs for a variable annuity based on specified assumptions including a range of hedging scenarios.

Learning Objective:
To educate students about life insurance and variable annuities, as well as the competitive forces and regulatory environment for life insurance companies in the US.

Suggested Citation

Pozen, Robert and Pearlman, David, Malcolm Life Enhances its Variable Annuities (December 15, 2010). Harvard Business School General Management Unit Case No. 311-041. Available at SSRN: https://ssrn.com/abstract=2034951

Robert Pozen (Contact Author)

Massachusetts Institute of Technology, Sloan School of Management, Students ( email )

Cambridge, MA 02139
United States

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

David Pearlman

affiliation not provided to SSRN ( email )

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