Last SCOR publications

Life (Re)insurance

A Year in review - Top 10 Themes of 2016
Over the past year, SCOR staff members, including our senior management team, have met with clients on…
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Term Life Sales Leadership - How Important Is Price?
As many insurers are currently reviewing the need for term repricing in light of PBR implementation during…
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Inforce Management - Inforce Block Transactions Are a Powerful Tool
The concept of inforce management has taken on increased importance due to low interest rates and an…
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Evolving Strategies to Improve Inforce Post-Level Term Profitability
A popular topic at industry meetings is how companies can best manage the post-level term (PLT) for…
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Using Financial Reinsurance to Address GAAP Earnings Volatility
Discussions around financial solutions usually involve programs to manage peak redundant reserves associated with XXX/AXXX compliance. Financial…
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Stochastic Modeling Is on the Rise
Editor’s Note: In the last issue of The Messenger David Wylde and Michael Failor examined “why” companies…
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Group Reinsurance Broadens Options for Our Clients
Group reinsurance plays a vital role in the industry in assisting direct writers in managing volatility and…
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Building Permanent Structures to Address XXX Reserves
It has been a decade since the height of the term wars, when many life companies were…
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Consumer Buying Behavior: What it Means to the Carrier
Life insurers are devoting resources to develop better ways of measuring and understanding consumer behavior. By doing…
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New Accounting Rule – To DAC or Not To DAC?
Effective this year, insurers must comply with a new Federal Accounting Standards Board (FASB) rule, “Accounting for…
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Reinsurance Purchasing Trends Follow Interest Rates
Direct writers do not always correlate reinsurance purchasing with sales activity. In fact, companies occasionally request requotes…
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Ambiguous Life Expectancy and the Demand for Annuities
In this paper, ambiguity aversion to uncertain survival probabilities is introduced in a life-cycle model with a…
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Back to the Future: Low Interest Rates
A period of prolonged low interest rates has beset life insurers for several years now, forcing writers…
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Top Equity Analyst Reviews Life Insurance
A view of the US Life Insurance market by Colin Devine, who provides equity research coverage on a…
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Preparing for the Low Interest Rate Scenario
A wise actuary once said that we spend much more time on risks that we understand than…
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An innovation for the Korean market: life insurance with no medical selection
James (Jae Shik) Lee and Damien Migout SCOR Global Life Newsletter
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SCOR Global Life develops a risk factor calculator for risk assessment in life assurance based on the PROCAM study
Tele-interviewing and specifically tele-underwriting, is the most important underwriting innovation of the past decade. Far from being…
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Strategic Considerations for PBR
Up to now, much of the focus of the discussion around principles-based reserves (PBR) has centered on…
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10 Essential Elements for an Effective Agreement
How can we start putting together an effective agreement for mutual, long-term success? Here are my 10…
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Preferred life products in life insurance
Life insurance is based on the pooling of risk; To avoid excessive disparity in risks that would…
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Understanding Reinsurance Expenses
The life insurance industry has traditionally used conservative mortality pricing to help compensate for expense costs, especially…
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Client Needs for Inforce Reinsurance Capacity
We observed significant change in the supply of and demand for reinsurance capacity for in-force individual life…
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Underwriting for Financial Results
As a primary life insurer, you underwrite individuals in order to determine premiums to charge for the…
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When the Level Term Ends - Terminations and Conversions Post-Level Term
Increasing post-level term (PLT) persistency has been a hot topic in the industry. Most discussion has centered…
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Surrender analysis in a segregated fund
This paper is focused on the analysis of the surrender option embedded in a participating endowment insurance.…
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Term Life – Implications of the End of Level Premium Period
Every day hundreds of term life policyholders receive 60-day notices of rate changes because their level premium…
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Reinsurance Purchasing Trends Follow Interest Rates
Direct writers do not always correlate reinsurance purchasing with sales activity. In fact, companies occasionally request requotes…
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The End-of-Level-Period Balancing Act
Setting end-of-level-period (EOLP) term rates has never been an exact science in our industry. Two predominant schools…
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In Times of Low Growth, Preservation is Key
LIMRA statistics indicate that life insurance sales have dropped across product lines, with a 23-percent drop in…
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Lapse Rates: Focus of More Attention
Lapse rates play an important role in the profitability of a guaranteed level premium term insurance portfolio.…
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Lapse Effects on Level Premiums
When level premium term insurance first became popular, the industry recognized two long-term risk factors – mortality…
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Lapse Studies Reveal Behavior Insights
Getting the lapse rate assumption wrong on a term insurance portfolio can have a significant impact on…
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Lapse Rates in a Principles-Based World
Principles-based regulations (PBR) are continuing to take form, and as we get closer to implementation, companies must…
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Effects of Low Lapse Rates on Level Premium Term Profitability
Level premium term lapse rates have decreased over recent years, which many insurers may see as a…
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Preferred Risk Classification - Should We Keep the Status Quo?
A recent SCORviews article shared potential considerations when resetting existing underwriting criteria cutoffs within a preferred class…
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The New Underwriting Paradigm - Carrier Options
Dave Dorans, who heads up SCOR’s Velogica solution for middle market business, outlines the challenges involved in…
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Individual Life Sales Trends: Will IUL & Whole Life Continue to Drive the Growth?
Common wisdom in the industry argues that in times of financial uncertainty consumers will gravitate to the…
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Strong Equity Market, Strong IUL Sales- Easy Sale, Complex Product
Sales of Indexed Universal Life (IUL) have outpaced other products for several years. Certainly recent stock market…
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Pricing a Single Premium Immediate Annuity
Many editorials have been devoted to the need for a protected income stream in retirement and the…
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The Evolution of Living Benefits Riders
The concept of accelerated death benefits (ADB) for life insurance is not new. ADB riders have been…
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Preferred Risk in Life Insurance
Life insurers have understood for a long time that certain differences among the population lead some groups…
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Velogica® Analytics Minimize the Risks in Non-Medical Underwriting
Many life insurers are considering entering or expanding their presence in the middle market where the time…
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VELOGICA®: Technology to Support Middle Market Strategies
Life insurers often express interest in tapping into the underserved middle market but have difficulty making the…
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NAIC Statement Draft: Term-UL Implications?
In August the National Association of Insurance Commissioners’ (NAIC) Life Actuarial Task Force (LATF) released a statement…
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Term Conversions – Balancing Value, Price and Risk
While almost every term carrier offers term-to-perm conversion provisions, individual company strategies drive what is provided in…
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Term/UL Cuts into Traditional Term Life Sales
Term life insurers have been looking for signs of recovery in sales; instead, last year’s new premium…
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Term Trends – Products over Pricing (For Now)
When discussing term trends, we often focus on pricing and movement among the top market players. While…
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Term Life: Understanding Post-Level Experience
The life insurance industry is beginning to experience the effects of the so-called “shock lapse” as level-premium…
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An Update on the Life Settlement Market
At the start of the year, many life insurers worried that rising unemployment and declining portfolio values…
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Term Life Pricing and Design: A New Day?
Life insurers have been taking small steps to address the performance of their term life portfolios for…
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AG CCC Causes Rethink on ROP Term
Like so many aspects of the life insurance business, manufacturing return of premium (ROP) term just became…
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Life Settlement Market: Emerging Trends and Experience
The secondary market in life insurance policies has been a topic of high interest with life insurers…
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Term Price Leaders ... How Do They Do It?
In looking at the term market, you have probably wondered how a handful of price leaders can…
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Return of Premium Products
Return of Premium (ROP) products are among the best selling items in the term life insurance market…
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Life Settlements: A Risk for Term Insurers
To date, the life settlement market has focused on purchasing older age, high face amount, non-term policies…
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Life Settlements: Risk and Opportunity
The appearance of HIV/AIDS in the 1980s raised awareness of untapped value embedded in policy owners’ life…
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This article examines the relation between the development of life insurance sector and economic growth, for a…
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In this note, we present a simple but actuarially sound updating mechanism for lifelong health insurance contracts,…
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In this paper we study the pricing and hedging problem of a portfolio of life insurance products…
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Little is known about perceptions of medical expenditure risks despite their presumed relevance to health insurance demand.…
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We use data from the Survey of Consumer Finance and Survey of Income Program Participation to show…
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This paper studies the life cycle consumption-investment-insurance problem of a family. The wage earner faces the risk…
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We use a brand new data-set built from French supervisory reports to investigate the drivers of the…
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Life insurance policies are no longer seen solely as a means of insuring life. Due to many…
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While life insurance purchase decisions have long been studied, we still do not know how people decide…
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Tracking performance of life insurance or similar insurance policy using standard statistical process control chart is complex…
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Urbanization, as an integral process of economic development, has profound impacts on insurance industry development. However, the…
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For lifelong health insurance covers, medical inflation not sufficiently incorpo- rated in the level premiums determined at…
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Le marché de l’assurance‑vie en France, qui a capté 1500 milliards d’euros d’épargne, est aujourd’hui confronté à d’importants challenges. Alors que les…
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We consider the problem of how an individual can use term life insurance to maximize the probability…
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We draw on part-worth utility profiles of 2,017 persons obtained by means of a choice-based conjoint (CBC)…
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We draw on part-worth utility profiles of 2,017 persons obtained by means of a choice-based conjoint (CBC)…
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We run a choice-based conjoint (CBC) analysis for term life insurance on a sample of 2,017 German…
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Premiums and benefits associated with traditional life insurance contracts are usually specified as fixed amounts in policy…
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In this paper we investigate the local risk-minimization approach for a combined financial-insurance model where there are…
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In this paper we show how prospective modelling of an economic balance sheet using the least squares…
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Low interest rates are becoming a threat to the stability of the life insurance industry, especially in…
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We analyze the prevailing valuation practices in the life settlement industry based on a sample of 11…
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While life insurance purchase decisions have long been studied, we still do not know how people decide…
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This paper studies the life cycle consumption-investment-insurance problem of a family. The wage earner faces the risk…
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We determine how an individual can use life insurance to meet a bequest goal. We assume that…
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The recent introduction of new economic- and risk-based reporting and solvency frameworks across the insurance industry is…
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What has caused the rising gap in health insurance coverage by education in the U.S. over the…
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Life insurance rating is mainly based on two principles: discounting effect and mortality risk. The traditional way…
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Religion has been identified as an important factor that shapes people’s perception about life. Particularly issues relating…
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This report combines Linklaters’ market insight with the candid views of 100 finance directors and investment decision-makers…
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Across a wide set of nongroup insurance markets, applicants are rejected based on observable, often high-risk, characteristics.…
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Historical Evolution of Life Insurance Meeting the Risks of the New Environment   Anne Obersteadt and alii…
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Dynamic hybrid products are innovative life insurance products particularly offered in the German market and intended to…
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German life insurers are facing consolidation tendencies as themajor players increase theirmarket share. As a result, insurance…
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La première année de décollecte de l'assurance vie suscite des interrogations sur le statut de cet instrument…
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In a continuous time life cycle model of consumption with uncertain lifetime and no "pure time preference",…
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A well-performing life insurance industry benefits consumers, producers and insurance firm stockholders alike. Unfavourable market conditions stress…
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The life and pensions sector has many reasons to be upbeat about its future. A larger and…
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We compare cliquet-style interest rate guarantees used in German participating life insurance contracts across different economic environments.…
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Ce travail présente le contexte et l’état du marché de l’assurance vie dans les pays d’Afrique subsaharienne…
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Report, in French, about the Life Insurance Market in France, published by the National Institute of Statistics…
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Erhan Bayraktar and Virginia R. Young The North American Actuarial Journal (NAAJ)–Volume 13, Issue 1
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We find the minimum probability of lifetime ruin of an investor who can invest in a market…
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Interest rate guarantees in unit-linked life insurance products ensure that at contract maturity, at least a minimum…
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To explain the success of different distribution strategies in the life insurance industry, we analyze the performance…
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Attractive life insurance product design becomes increasingly important due to demographic change and a declining confidence in…
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Equity-indexed annuities (EIAs) provide investors with a minimum rate of return and at the same time the…
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Whole life insurance plays an important role in household saving. However, empirical evidence on its determinants is…
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In this paper we propose a new method for approximating the price of arithmetic Asian options in…
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What types of households own life insurance? Who owns term life and who owns whole life insurance?…
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Solvency II splits life insurance risk into seven risk classes consisting of three biometric risks (mortality risk,…
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This paper deals with the reaction of the life insurance industry to ageing and the next massive…
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The values of life insurance and annuity liabilities move in opposite directions in response to a change…
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We consider a risk averse retiree from a defined contribution plan who decides to purchase a one-life…
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This paper gives analytic approximations for the distribution of a stochastic life annuity. It is assumed that…
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The economic reasons for life insurance regulation have not been well developed in the finance literature. In…
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One of the acknowledged difficulties with pricing immediate annuities is that underwriting the annuitant’s life is the…
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In this paper we develop a valuation method for equity-linked insurance products. We assume that the premium…
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We find the participation rate, guaranteed death benefit, guaranteed surrender benefit, and initial and maintenance fees that…
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This paper investigates the determinants of consumption for one of the fastest growing financial products in Asia.…
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Genetic tests can be expected to produce a large amount of economically important information in the future.…
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The present paper extends the existing literature on lapse risk by presenting a flexible way to model…
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Life insurers typically grant policyholders a surrender option. We demonstrate that the resulting lapse risk could materialise…
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Using a large representative household panel we estimate hazard rate models to analyze the lapse behavior in…
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The financial guarantees embedded in variable annuity (VA) contracts expose insurers to a wide range of risks,…
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I examine competition in the sector of mortgage life insurance, in particular the periodic switching right (PSR),…
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We analyze life insurance policy surrender activity to determine whether surrender is a function of certain macroeconomic…
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The intention of this paper is to review research on lapse in life insurance and to outline…
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Securitization transactions are a very powerful tool for financial institutions to optimize their risk position. Given the…
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Core insurance business, due to its business model, is not as liquidity dependent as banking. Nevertheless, scenarios…
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Because pension plans have been marketed using outdated technical premises, Brazilian insurance companies find themselves required to…
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Previous research has shown that the reasons for lapsation have important implications regarding the effects of the…
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Life insurance policy lapses are detrimental to issuing insurers when lapses substantially deviate from insurer expectations. The…
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This paper studies the determinants of lapse in the German life insurance industry. Logistic regression models are…
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Considering the largest dataset ever used for this purpose (2.5 million contracts, 8.9 million policy years), we…
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Milliman, Inc. was engaged by the Society of Actuaries’ Product Development Section to examine the experience in…
In this paper, one error-correction model (ECM) that is able to avoid the problem of producing noise…
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