Hi, I am a little confused about group annuities. Are there any difference between these and individual payout annuities from a pricing/valuation perspective? Any inputs are welcome...
One thing I can think of is (please correct me if I'm wrong since I have no idea what I'm talking about), since most group annuities are offered to pension plans, we need to model the accumulation phase in addition to the payout phase.
Thank you so much for helping. This could be a potential interview question for me soon.
One thing I can think of is (please correct me if I'm wrong since I have no idea what I'm talking about), since most group annuities are offered to pension plans, we need to model the accumulation phase in addition to the payout phase.
Thank you so much for helping. This could be a potential interview question for me soon.
Group annuities (pricing/valuation)
