보증옵션(Guarantee Option)의 활용을 통한 변액연금시장의 발전방안

A Study on Development of Variable Annuity Market with the Use of Guarantee Option

Korea is facing the serious problem of aging population. Korea’s rapid growth and industrialization increase the need for financial planning and retirement and pension plans have been acknowledged as critical for financial planning. This study analyzes solutions for potential problems of Korean national pension and occupational pension plan. Annuity market is growing rapidly and insurers have developed products that meet retiree’s demands more effectively. One of the most popular products is Variable Annuity(VA), a unit-linked product commonly sold with a guarantee. Out of VA products, a guaranteed minimum death benefit(GMDB) was introduced first. Since the late 1990s, US insurers have enhanced VA products by offering guaranteed living benefit(GLB). Main types of GLB include Guaranteed Minimum Accumulation Benefit(GMAB), Guaranteed Minimum Income Benefit(GMIB), Guaranteed Minimum Withdrawal Benefit(GMWB), and Guaranteed Lifetime Withdrawal Benefit(GLWB). For Guaranteed Minimum Withdrawal Benefit(GMWB), specified amount is guaranteed for withdrawals during the contract period as long as both withdrawal amount and the total amount that is withdrawn over the policy period stay within certain limits. VA’s guarantee options, especially GMWB, have proven popular. VAs have been one of the fastest growing retirement products in the US and its sales in Japan have increased dramatically. Similar products are being launched in Korea and GMWB would be good for insurers and retiring insureds. More competitive product development and improvements of market practice are necessary for successful GMWB market in Korea.