Malcolm Life Enhances its Variable Annuities
Massachusetts Institute of Technology, Sloan School of Management, Students; Brookings Institution
affiliation not provided to SSRN
December 15, 2010
Harvard Business School General Management Unit Case No. 311-041
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.
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.
Date posted: April 5, 2012