Smoothing payouts on with-profits policies

Approaches to smoothing vary significantly across the industry, and it is quite common for different smoothing strategies to be applied to different funds within the same firm. Milliman consultants Jennifer Strickland, Russell Osman, and Jennifer van der Ree recently conducted a survey of the different methodologies applied across a broad sample of UK with-profits funds.  This paper presents the results of the survey and looks at the smoothing costs that could arise under some of the most common approaches.

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