Life insurers often claim that the life settlement industry reduces theirsurrender profits and leads to an adverse shift in their portfolio of insuredrisks, i.e., bad risks remain in the portfolio instead of surrendering.In this paper, we aim to quantify the effect of altered...

Most life insurance contracts embed the right to stop premium payments during the termof the contract (paid-up option). Thereby, the contract is not terminated but continueswith reduced benefits and often provides the right to resume premium payments later,thus increasing the previously reduced...

An attractive life insurance product design becomes increasingly important due to demographic change and a declining confidence in state-run pension schemes. Most life insurance contracts are often offered with investment guarantees embedded in the savings part of the product. In addition,...

The aim of this article is to identify fair equity-premium combinations for non-life insurers that satisfy solvency capitalrequirements imposed by regulatory authorities. In particular, we compare target capital derived using the value at risk concept as planned for Solvency II in the European...

Substandard annuities pay higher pensions to individuals with impaired health and thus require special underwriting of applicants. Although such risk classification can substantially increase a company's profitability, these products are uncommon except for the well established U.K. market. In...