Index
Milliman Hedge Cost Index March 2024
Milliman updates design for the Milliman Hedge Cost Index and introduces a new variation of the index for GLWB on RILA.
By Xiaohong Mo and Daren Lockwood
01 April 2024
Milliman recently completed a review of the design of the Milliman Hedge Cost Index™ (MHCI) for a hypothetical guaranteed lifetime withdrawal benefit (GLWB) rider on variable annuities (VAs) and implemented some changes to align product features and assumptions with those prevalent in the marketplace. In addition, in response to the increasing popularity of registered index-linked annuities (RILAs), Milliman developed a new variation of the MHCI for GLWB on RILA alongside the existing VA GLWB index under the MHCI umbrella.