Volatility
- I think you really have to make sure that people understand volatility, whether you solve for a policy blowing up or values being halved.
- I think you have to catch people's attention, and that is all to the good.
-- George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group - Illustrations)
1994 - SOA - Problems and Solutions for Product Illustrations, Society of Actuaries - 28p
- 2019 0312 - 2019-1, NAIC Proc. - IUL Illustration (A) Subgroup, Conference Call
- Mr. Tsang said the illustration should be used to manage policyholder expectations and should show the volatility of returns, so the policyholder has a realistic picture of the risks.
- Brian Lessing (AXA) said it is difficult to illustrate the volatility, which is why in-force illustrations are so important.