Context Of Life Insurance Research Articles

ESTIMATION OF FUTURE DISCRETIONARY BENEFITS IN TRADITIONAL LIFE INSURANCE

AbstractIn the context of life insurance with profit participation, the future discretionary benefits (FDB), which are a central item for Solvency II reporting, are generally calculated by computationally expensive Monte Carlo algorithms. We derive analytic formulas to estimate lower and upper bounds for the FDB. This yields an estimation interval for the FDB, and the average of lower and upper bound is a simple estimator. These formulae are designed for real world applications, and we compare the results to publicly available reporting data.

A Bivariate Lattice Model to Compute Risk Measures in Life Insurance Policies

This article considers the problem of computing risk measures in a life insurance context by means of a lattice-based approach. The main advantage of the proposed model relies on the fact that the dynamics of the risk factors may be approximated by a unique lattice along the whole time horizon, thus guaranteeing the same computational cost of a standard pricing problem. This allows the author to develop an efficient model that computes accurate estimates of the considered risk measures. TOPICS:Risk management, derivatives, options, equity portfolio management Key Findings ▪ This article shows how lattice-based models can be used to evaluate risk measures of life insurance contracts. ▪ A bivariate lattice is constructed to approximate the loss function of an equity-linked policy with or without mortality risk. ▪ Numerical results show that the model computes accurate value at risk and conditional value at risk values in all the considered cases.

Would You Like A FitBit With That Insurance Policy?

Would you like a Fitbit with that insurance policy? It seems, perhaps, like a strange question for a policyholder to hear. Yet this, and similar questions, are increasingly common due to a trend in insurer wellness programs. Health and life insurance companies are offering policyholders wellness programs akin to counterparts in the employment arena, where policyholders receive rewards or premium discounts in exchange for participating in health education and surveys or for meeting set health goals. The programs aim to incentivize policyholders to take personal responsibility for health behaviors. The expansion of wellness programs comes even as growing evidence suggests that workplace wellness programs do not significantly improve health or other metrics. Although promoting health is a worthy goal, if insurer wellness programs fail to create meaningful change in health metrics, their use may further entrench a system of shifting costs to those most burdened in society under the weak guise of personal responsibility and health promotion. Insurers, simultaneously, may benefit from gaining valuable consumer data without clarity on how this data will be used or with whom it will be shared. Regulation at the state and federal level generally sanctions or even encourages these programs. However, especially in the life insurance context, regulatory efforts fail to require even the most basic of protections across all programs. This paper argues for regulation to provide at least baseline protections across five domains. Programs must be offered to all similarly situated individuals; provide reasonable alternatives to those unable to meet program goals due to health; prohibit unreasonable or exorbitant monetary incentives, especially those linked to premiums; be reasonably designed to promote health; and have protections and disclosure requirements surrounding policyholder data. Even these most rudimentary protections are not guaranteed across all insurance wellness programs given the patchwork regulation to date. Without such protections, programs risk harming the most vulnerable in society without substantial benefit to the health and wellness of those participating.

Customer Self Oriented and Other Oriented Intrinsic Values, Brand Trust and Consumer-Brand Relationship: A Conceptual Review with Reference to Life Insurance Sector Research Proposition

The purpose of this paper is to explore the intrinsic value and brand trust on Consumer-Brand Relationship. Particular attention is focused on concerning literature and using the result of literature review providing research proposition leading to theoretical and managerial implication. Building and continuously maintaining close brand relationship with customers has become regular necessary for current business. The consumer brand relationship is still very rarely applied in the life insurance context. The author highlighted Proposition of intrinsic self-oriented value (Hedonic Value), Proposition of intrinsic other oriented value (Altruistic value) and Proposition of Brand Trust on consumer brand relationship. New research proposition presented in this paper enhance the literature on recent development in consumer brand relationship. This study was made to build argument supporting to suggested proposition. Findings of this study can be used by brand marketer to identify their strength and weakness. Finally, researcher does propose to expand the future studies on different context.

A Review of Catastrophic Risks for Life Insurers

Catastrophic mortality events are characterized by a sudden and concentrated increase in mortality and as such present a major risk to life insurers. Such events include pandemics, war, natural disasters, terrorist attacks, and industrial, transport, and other accidents. Of these, pandemics arising from influenza are considered the most significant threat to the life insurance industry due to their capacity to cause a major increase in claims. We review the features and mortality implications of an influenza pandemic for life insurers, and describe a range of other risks that are likely to emerge as well.

The Antecedents of Customer Loyalty: An Empirical Investigation in Life Insurance Context

The Antecedents of Customer Loyalty: An Empirical Investigation in Life Insurance Context

Life Insurance and the Agency Conflict: An Analysis of Prudential Regulation to Guard Policyholders from Excessive Risk Taking

The paper builds on the current discussion on reforming insurance regulation in light of the EU’s move towards the Solvency II regime and studies the agency problem in a life insurance environment. It compares dierent regulatory regimes in their eectiveness to control the owner’s incentive for excessive risk taking, both in an analytically tractable life insurance model as well as in the realistic market consistent valuation framework. As such it is the rst paper to investigate the Solvency I & II regimes in an analytical framework going back to ??, as well as extend the analysis to the industry standard market-consistent embedded value (MCEV) methodology to address valuation, solvency, and agency questions in a life insurance context. The results suggest that the new Solvency regime eliminates an unfair subsidy of equity holders at the expense of policyholders in bad states of the world. By imposing an implicit restriction on asset performance through the link of capital requirements to asset performance, Solvency II makes policyholder protection compatible with the shareholder incentive of equity value maximization with positive impact on welfare. In the MCEV setup, it is further shown that the value of future operations reduces the owner’s incentive for excessive risk taking. Lastly, low market yields can threaten solvency and, despite the optionality of the liabilities, the default put option can dominate equity payos.

Is genetic information relevantly different from other kinds of non-genetic information in the life insurance context?

Within the medical, legal and bioethical literature, there has been an increasing concern that the information derived from genetic tests may be used to unfairly discriminate against individuals seeking various...

On ratios of random variables and generalised mortality rates

We find the distribution function of a ratio of dependent random variables which can represent a generalised mortality rate in a demographic or life insurance context. Each death in the numerator and each unit of exposure in the denominator are weighted by a random sum at risk, which is assumed to follow a gamma distribution. General results on the existence of moments of ratios of random variables are established, and applied to show that the moments of the rates considered here depend in a simple way on the minimum number of entrants into the mortality investigation.

On ratios of random variables and generalised mortality rates

We find the distribution function of a ratio of dependent random variables which can represent a generalised mortality rate in a demographic or life insurance context. Each death in the numerator and each unit of exposure in the denominator are weighted by a random sum at risk, which is assumed to follow a gamma distribution. General results on the existence of moments of ratios of random variables are established, and applied to show that the moments of the rates considered here depend in a simple way on the minimum number of entrants into the mortality investigation.

SELECTION INTERVIEW DECISIONS: FIRST RESULTS FROM A LONG‐TERM RESEARCH PROJECT

AbstractRecent reviews of the literature have pointed out the need for additional knowledge of the decision‐making process as it occurs in the selection interview. The present paper reports the first results from a long‐term project designed to investigate this process in a life insurance context. These results provided valuable information on which additional work could be based. The research presently being undertaken is briefly described and discussed.