Unobserved heterogeneity : process and parameter effects in life insurance

Jaap Spreeuw & Henk Wolthuis

In this paper life insurance contracts based on an urn-of-urns model, with age-at-death asobservable variable, are analyzed. Premium payment functions based on the principles of "equivalence on an individual level" and "equivalence on a group level" are compared. Boththe aggregate loss and its second moment for an individual contract are split in severalcomponents. Life insurance contracts are compared with non-life insurance contracts, alsowith respect to solidarity.

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Year of publication:	1997
Authors:	Spreeuw, Jaap ; Wolthuis, Henk
Publisher:	Rotterdam [u.a.] : Tinbergen Inst.
Subject:	(Unobserved) heterogeneity \| Urn-of-urns model \| Life Insurance \| Equivalence \| Loss variance \| Solidarity \| Lebensversicherung \| Life insurance \| Theorie \| Theory \| Versicherungsmathematik \| Actuarial mathematics