The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 239 bps as of the end of November 2020, down 2 basis points from the previous month, driven by a decrease in volatility. The Index Methodology provides additional details about the assumptions and methodologies underlying the Milliman Hedge Cost Index.
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Hedge Cost Index November 2020
The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 239 bps as of the end of November 2020, down 2 basis points from the previous month, driven by a decrease in volatility.
Daren Lockwood, Xiaohong Mo, Adam Schenck