As a solution to the longevity risks in annuity business we consider securitizations which transfer the risks to the financial markets. We apply the classical Lee-Carter model to generate the future stochastic survival distribution. We show a method to design the survivor bonds using the...

Motor insurance linked securities are developed in modern time to adopt into the contemporary financial market. They create new opportunities for the investors in the financial market and provide great diversification to the traditional assets normally offered. They also benefit the insurers by...

The purpose of this research is to analyze the motivations for mergers and the disclosure effects before and after two parties, which have a parent and subsidiary relationship, submit a merger agreement. The results of analysis show that the main aims of a merger between the two parties are to...

This paper shows a model of the profit testing and the process of assessing the profitability of the unit linked products. The impacts of the imbedded guaranteed minimum death benefit (GMDB) options on the profit margins of the unit linked policies are analysed

We discuss deterministic asset liability management methods for insurance business and consider a few hedging strategies for the interest rate risks by approximating the changes in surplus according to the changes in interest rates. We show that the first and the second derivative matching would...

In an attempt to manage the risk of mismatch between the actual claims and the anticipated claim amounts in motor insurance pool, we introduce a few new concepts of motor loss ratelinked securities such as motor loss rate options and motor loss rate swaps. These hybrid derivatives can transfer...