1. Key Points from the Presentation
FA or Fixed Annuities in the US are similar to Interest Sensitive Annuities in Taiwan
FA are similar to FIA or Fixed Index Annuities (also know as Equity Index Annuities) without any riders
LIMRA in USA combines FIA and FA into Fixed Annuity Category vs VA in chart below
FIA are essentially interest rate sensitive annuities with the crediting rate (or the interest/return) that is tied to an index (S&P 500 or a custom index)
Example- Asset Portfolio Yield of 5%, product cost, margins, and default provisions of 2%, produces 3%
In an Interest Sensitive Annuity or FA- the 3% goes to the policy holder/end client at the end of the year
In an FIA the 3% goes to the Derivatives/Risk Management team and they buy a call spread option (point to point payoff), call option (point to point payoff), cliquet option (monthly sum cap payoff), etc.
These options expire in or out of money at the end of the year and the policy holder/end client gets 0%, 1%, 2%, 3%, 4%, up to even 12% (or even potentially higher) in 2017
FIA represent the best of both worlds of FA and VA, principal protection and upside potential (with some sort of cap/limit)

2. Monthly Sum Cap (Cliquet) compared to Point to Point (Call Spread)