The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 204 bps as of the end of July 2021, up 7 basis points from the previous month, driven by a decrease in long-term interest rates. The Index Methodology provides additional details about the assumptions and methodologies underlying the Milliman Hedge Cost Index.
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Hedge Cost Index July 2021
The expected hedge cost for a hypothetical GLWB block (see Index Methodology1) is estimated to be 204 bps as of the end of July 2021, up 7 basis points from the previous month, driven by a decrease in long-term interest rates.
Daren Lockwood, Xiaohong Mo, Adam Schenck