Cracking Annuity Pricing Assumptions

Open Access
Author:
Chukwueke, Theophilus Ogbonnaya
Area of Honors:
Actuarial Science
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Ron Gebhardtsbauer, Thesis Supervisor
  • Ron Gebhardtsbauer, Honors Advisor
  • Lisa Lipowski Posey, Faculty Reader
Keywords:
  • Annuities
  • Mortality
  • Interest Rates
  • Expenses
  • Pricing
  • Modeling
  • Actuarial Science
Abstract:
Market annuity prices were obtained from a third party provider, Cannex, to determine a set of assumptions that reproduce a good estimate of those prices. This paper discusses the formulas and assumptions used to determine an annuity price and concludes with an analysis of the different company annuity prices.