TIS Ratio: benchmark vs risk control

Fixed indexed annuities (FIAs) are an attractive combination of principle protection with participation in upside performance of an underlying index. Over the last decade there has been huge growth in the number and variety of custom risk control indices specifically designed for use in FIAs. But comparing these indices presents a problem. The TIS Ratio measures the realised performance of a one-year call option on an index compared to the estimated mid-market cost of that option Given that