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White Paper

Capital redundancy in indexed annuities

29 August 2022

We estimate that current factor-based statutory capital requirements and capital standards resulted in capital redundancy of approximately $3.4 billion for Fixed Indexed Annuities (FIA) as of December 2021. Our paper analyzes capital redundancy in FIAs and argues that the use of principle-based methods would reduce the cost of capital in FIAs.


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