The Equity Index Annuity

an examination of performance and regulatory concerns

Authors

  • Gregory A. Kuhlemeyer Carroll College, Department of Business Administration and Economics, Waukesha, WI, USA

DOI:

https://doi.org/10.1016/S1057-0810(01)00074-9

Keywords:

EIA, Equity Index Annuity

Abstract

The Equity Index Annuity (EIA) is a recent product development in the insurance industry. This paper details EIA design and interest crediting techniques, examines expected performance, and discusses possible regulatory concerns. Results indicate that the EIA is generally expected to perform better than a traditional fixed annuity for contract periods of at least five years, but is substantially below that of a similar direct equity purchase. EIA contracts are not appropriate for shorter-term investors when factors of risk and efficient markets are considered. The SEC is not currently regulating the EIA product, which should raise industry concern. © 2001 Elsevier Science Inc. All rights reserved.

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Published

2000-12-30

How to Cite

Kuhlemeyer, G. A. (2000). The Equity Index Annuity: an examination of performance and regulatory concerns. Financial Services Review, 9(4), 327–342. https://doi.org/10.1016/S1057-0810(01)00074-9

Issue

Vol. 9 No. 4 (2000): Financial Services Review

Section

New Original Submission

License

Copyright (c) 2000 Elsevier Science Inc.

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