We describe the risks faced by the aging population and survey the corresponding insurance markets for these risks. We focus on income risk, health expenditure risk, long-term care expenditure risk, and mortality risk. We also discuss the interactions between social insurance and private...

Die beiden versicherungskritischen Journalisten verschärfen ihre Warnungen vor der betrügerischen Lebens- und Altersversicherungsbranche und nennen auch die Rückendeckung durch die Politik beim Namen (Zitate mit Personenregister). 10 ausführliche Kapitel widmen die Autoren undurchsichtigen...

This paper studies the model risk of the Black-Scholes (BS) model in pricing and risk-managing variable annuities motivated by its wide usage in the insurance industry. Specifically, we derive a model-free decomposition of the no-arbitrage price of the variable annuity into the BS model price in...

An annuity is an arrangement in which an individual makes a one-time payment (the premium) to an insurer in exchange for a lifetime payment stream. Ideally, the expected present value of the payment stream matches the premium, making it a fair annuity. In practice, the payment stream is smaller...

We construct a tractable discrete-time overlapping generations model of a closed economy and use it to study government redistribution of accidental bequests and private annuities in general equilibrium. Individuals face longevity risk as there is a positive probability of passing away before...

Variable annuities have been one of the most rapidly growing financial products of the last two decades. Between 1996 and 2004, nominal sales of variable annuities in the U.S. more than doubled, from $51 billion to $130 billion. Variable annuities now account for approximately nearly two thirds...

Variable annuities have been one of the most rapidly growing financial products of the last two decades. Between 1996 and 2004, nominal sales of variable annuities in the U.S. more than doubled, from $51 billion to $130 billion. Variable annuities now account for approximately nearly two thirds...