Part III

Future Directions
Most respondents expect the recent market down turn to negatively
impact VA sale
– The availability of guarantees are expected to reduce the impact
– Some respondents even expect increased sales due to the guarantees
Operational efficiency improvement
– Enhanced vega/rho hedging
– Increased frequency of in-force updates
– Expansion of hedging coverage
– Reductions in derivative execution costs through increased use of
exchange-traded instruments
– Better fund selection process
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