Enhanced Annuities and the Impact of Individual Underwriting on an Insurers Profit Situation

We analyze the effect of enhanced annuities on an insurer engaging in individualunderwriting. We use a frailty model for the heterogeneity of the insured populationand model the individual underwriting by a random variable that positivelycorrelates with the corresponding frailty factor. For a given annuity portfolio, weanalyze the effect of the quality of the underwriting on the insurers profit/losssituation and the impact of adverse selection effects.

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Year of publication:	2008-01-10
Authors:	Hoermann, Gudrun ; Russ, Jochen
Institutions:	Institut für Versicherungswirtschaft <Sankt Gallen>
Subject:	Zins \| Gewinnermittlung \| Versicherung

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Extent:	26 p. application/pdf
Series:	Universität St.Gallen - Institut für Versicherungswirtschaft - Working Papers WORKING PAPERS ON RISK MANAGEMENT AND INSURANCE ; No. 51 (2008)
Type of publication:	Book / Working Paper
Language:	English
Classification:	D14 - Personal Finance ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; G11 - Portfolio Choice ; G22 - Insurance; Insurance Companies ; Management of insurance ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005861406

Enhanced Annuities and the Impact of Individual Underwriting on an Insurers Profit Situation

Enhanced Annuities and the Impact of Individual Underwriting on an Insurers Profit Situation