We analyze minimum rate of return guarantees for life insurance (investment) contracts and pension plans with L smooth surplus distribution mechanism. We specifically model the smoothing mechanism used by most Danish life insurance companies and pension funds...

Interest rate guarantees seem to be included in lifeinsurance and pension products in most countries. The exact implementations of these guarantees vary from country to countryand are often linked to different distribution of investment surplusmechanisms...

In an editorial in ASTIN Bulletin, Hans Bühlmann (2002) suggests it is time to change the teaching of life insurance theory towards the real life challenges of that industry. The following note is a response to this editorial