Introduction

The United States is one of the few economically developed nations that does not have an extensive government pension program: the typical Social Security benefits are not sufficient for middle-income households to maintain their level of disposable income into retirement. Instead, the government incentivizes them—through tax benefits—to invest in employer-sponsored retirement plans and/or private savings vehicles.

This webinar will provide a general overview of these options, with a focus on what private life insurance companies can offer that requires neither government nor employer participation. Specifically, a relatively new product called “Registered Index-Linked Annuity” (RILA) is revolutionizing the US. market, with sales increasing over 50% per year since 2014. RILAs offer investors the opportunity for equity exposure, which is particularly valuable in the current low-interest rate environment, but with downside protection. Importantly, insurers can hedge their liabilities near-perfectly with financial options.

This webinar aims to present how the product works and explore whether this product would be suitable for the Nigerian market and what challenges Nigerian life insurers might face.