Variable Annuities: the new solution to long-term investment problem

In this article we provide an introduction to a class of insurance product called Variable Annuities and to pricing methods that can be used to evaluate them. These products have been present for a few years on the American, European and Asian markets, and continue to capture the attention of new investors. They could become the solution to retirement problems even in countries like China and India that, after the booming economy, will now face the social security problem of the new middle class.