Siqin Zhao, a Master of Science candidate in the Department of Mathematics and Statistics, will present their Masters Research Project (STAT 5P99) titled Review of Lapse and Reentry Behavior and Its
Impact on the Design of Variable Annuities on Friday, June 14, 2024 from 3:00 pm – 4:00 pm online on Microsoft Teams.

Students (both graduate and undergraduate) as well as other members of the Brock Community are invited to attend. If you are interested in the presentation, please contact Neil Marshall at nmarshall@brocku.ca for a link to the Team.

Abstract: This project explores the role of Variable Annuities (VAs) and Registered Index-Linked Annuities (RILAs) within contemporary financial planning, emphasizing how they adapt to evolving market conditions. A comprehensive analysis of these products is provided, including their protective mechanisms, pricing models, and risk characteristics, to explain why they effectively meet investor needs. The evolution from traditional annuities to VAs is traced, and the further development of RILAs from VAs is discussed. The study particularly focuses on the behavior of policyholders who often choose to surrender their policies for more favorable options, thereby maximizing their benefits. Through qualitative and quantitative analysis, the paper illustrates how these products respond to market developments.

Keywords: Variable Annuities, Registered Index-Linked Annuities, Policyholder Behavior, Insurance Product Design