Measuring Long-Term Insurance Contract Biometric Risks

2019 ◽  
pp. 95-128
Author(s):  
Quentin Guibert ◽  
Frédéric Planchet
Keyword(s):  
Insurance Contract ◽  
Term Insurance

scholarly journals A Short Note on Overall Risk Management in an Insurance Concern

1971 ◽  
Vol 6 (2) ◽  
pp. 153-156 ◽  
Author(s):  
Karl Borch
Keyword(s):  
Short Note ◽  
Insurance Contract ◽  
Short Term ◽  
Term Contract ◽  
Term Insurance ◽  
Short Term Contract ◽  
Proper Perspective ◽  
Image Position ◽  
Sound Foundation

1. At an earlier ASTIN Colloquium participants were invited to present notes on problems which they considered as important but unsolved. There was little response to this invitation, presumably because a problem, once it is well formulated, is almost solved.In this Note I do not present any new problems. In stead I try to outline a framework which may be useful for analysing different risk problems and seeing them in their proper perspective. In my view, a framework of this kind is urgently needed to place today's actuarial work on a sound foundation.2. In general an insurance contract will define two stochastic processes. We lose little by assuming that the processes are discrete, and describing them in the following manner:(i) The payment process: x0, x1 … xt …, where xt is the amount which the company pays to settle claims in period t, or at time t.(ii) The premium process: p0, p1 … pt …, where pt is the premium which the company receives in period t, or at time t.If the contract is concluded at time t = o, the Principle of Equivalence requires thatFor the typical short-term contract with premium payable in advance (i) will reduce to3. For a long-term insurance contract one usually requires that the inequalityshall hold for all τ. This means that the company must never be a net creditor of its customer.

Consumer Awareness, Consumer Protection, Service Quality and Loyalty: The Case of Long-term Insurance Consumers in Namibia

2019 ◽  
Vol 118 (8) ◽  
pp. 172-189
Author(s):  
Magreth B Tjizumaue ◽  
Krishna Govender
Keyword(s):  
Service Quality ◽  
Consumer Protection ◽  
Structural Equation ◽  
Insurance Industry ◽  
Business Practices ◽  
Consumer Awareness ◽  
Growth And Survival ◽  
Term Insurance ◽  
Protection Legislation

Due to the absence of appropriate Consumer Protection legislation in Namibia, there seems to be a lack of consumer protection, which may result in consumers being exploited. Since the literature reveals that Consumer Awareness, Consumer Protection, Service Quality and Customer Satisfaction influence Customer Loyalty, the aforementioned relationship was explored among consumers of long-term insurance products in Namibia. The researcher embedded the study in the Services Marketing and User’s Satisfaction/Dissatisfaction theory and developed a framework for creating a more aware consumer and thus contribute to the growth and survival of the long-term insurance industry in Namibia.  A survey was conducted using a questionnaire, among a judgmental sample of 407 long-term insurance consumers in Namibia and Structural Equation Modelling was used to analyse (eight) hypothesized relationships among the research constructs alluded to in the title of this study. In summary, it was ascertained that if the customers are fully aware (have sufficient knowledge of the products and their consumer rights), they will feel protected against unfair business practices. Furthermore, if they perceive having received quality services, they are more likely to be satisfied with the service provider and will therefore, remain loyal.

scholarly journals Portfolio management practices of investment practitioners active in the long-term insurance industry

2001 ◽  
Vol 4 (2) ◽  
pp. 344-358
Author(s):  
J. H. Mostert ◽  
S. J. Steel ◽  
F. J. Mostert
Keyword(s):  
Empirical Study ◽  
Portfolio Management ◽  
Management Practices ◽  
Insurance Industry ◽  
Investment Decisions ◽  
General Information ◽  
Financial Investment ◽  
Decisionmaking Process ◽  
Term Insurance

In the long-term insurance industry, sound financial investment decisions depend largely on the portfolio management practices of the investment practitioners concerned. The ability of the investment practitioners to make well-informed decisions, as well as the strategies and policies underlying portfolio management practices, are the main issues of this research. Important correlations amongst various aspects of the financial investment decisionmaking process, as well as their association with the general information pertaining to the long-term insurers (which were disclosed during the empirical study), emerge in the closing section of this paper. The conclusions should be of prime interest to long-term insurers as well as investment practitioners who are working in that industry.

A Review of the Statutory Valuation of Long-Term Insurance Business in the United Kingdom

1998 ◽  
Vol 4 (4) ◽  
pp. 803-864 ◽  
Author(s):  
P.W. Wright ◽  
S.J. Burgess ◽  
R.G. Chadburn ◽  
A.J.M. Chamberlain ◽  
R. Frankland ◽  
...  
Keyword(s):  
United Kingdom ◽  
Current Practice ◽  
Working Party ◽  
Insurance Companies ◽  
Current Form ◽  
Non Profit ◽  
The United Kingdom ◽  
Term Insurance ◽  
Insurance Business

ABSTRACTThis paper considers the approaches currently used by life offices for statutory valuations, and proposes a number of changes to current practice. It builds on the earlier work of Philip Scott's Working Party and a working party which reported on all aspects of unitised with-profits business to the 1996 CILA conference.Recommendations are made for each of the major categories of long-term business, in particular for the introduction of a bonus reserve standard for accumulating with-profits business, whilst retaining the net premium standard for conventional with-profits business. It is proposed that the current net premium approach for non-profit business should be replaced by a gross premium method. The paper also develops a greater codification of the calculation of non-unit reserves on linked business.Considerable emphasis is placed on the requirement for statutory reserves to have regard to PRE. It is assumed throughout that the E.C. Third Life Directive remains in its current form.A number of examples are provided which illustrate the proposed method for accumulating with-profits business. Appendices to the paper include a draft of suggested consequential changes to the Insurance Companies Regulations 1994, and a revised supporting version of the whole of GN8.

A Review of the Statutory Valuation of Long-Term Insurance Business in the United Kingdom

1998 ◽  
Vol 4 (5) ◽  
pp. 1029-1058
Author(s):  
P.W. Wright ◽  
S.J. Burgess ◽  
R.G. Chadburn ◽  
A.J.M. Chamberlain ◽  
R. Frankland ◽  
...  
Keyword(s):  
United Kingdom ◽  
The United Kingdom ◽  
Term Insurance ◽  
Insurance Business

The text of this paper, together with the abstract of the discussion held by the Faculty of Actuaries on 16 March 1998, are printed in British Actuarial Journal, 4, IV, 803-864

scholarly journals SOME CLARITY ON THE ACCRUAL OF LIVING ANNUITIES AT DEATH OR DIVORCE CM v EM (1086/2018) [2020] ZASCA 48; [2020] 3 All SA 1 (SCA); 2020 (5) SA 49 (SCA) (5 May 2020)

Obiter ◽  
2021 ◽  
Vol 42 (3) ◽  
Author(s):  
Eben Nel
Keyword(s):  
The Other ◽  
Investment Performance ◽  
High Court ◽  
Life Annuity ◽  
The Supreme Court ◽  
Form Part ◽  
Term Insurance ◽  
Definition Of ◽  
Court Of Appeal

A conventional life annuity is a contract in terms whereof an annuity underwriter guarantees a periodical payment to an insured in exchange for an initial non-refundable premium. The insurer pools all the annuity premiums together and assumes both the investment performance and the mortality risk by way of actuarial comparisons. The annuitant’s income is guaranteed for life or for a minimum period.Living annuities on the other hand are regulated by the Long-Term Insurance Act 52 of 1998 and are market-linked investments (with no income guarantee) in respect of which the annuitant annually chooses the drawdown rate – currently between 2.5 and 17.5 per cent per annum (compare Regulations in terms of s 36 of the Pensions Act 24 of 1956 and s 106(1)(a) read with s 108(1) of the Financial Sector Regulation Act 9 of 2017.) When an annuitant dies, the death benefit is payable to a nominated beneficiary or the estate of the insured. A pension-interest benefit is an asset for the purposes of the division of an estate at divorce, and includes both pension and provident funds. Living annuities, however, do not fall within the definition of “pension interest” as defined in s 1 of the Divorce Act.In CM v EM ((1086/2018) [2020] ZASCA 48; [2020] 3 All SA 1 (SCA); 2020 (5) SA 49 (SCA) (5 May 2020)), the Supreme Court of Appeal, in an appeal from the full court of the Gauteng Division of the High Court, sitting as court of appeal, had the opportunity to determine where the ownership of capital invested in the form of a living annuity vests, as well as whether the value of an annuitant spouse’s right to future annuity payments is an asset in his or her estate and therefore subject to accrual. Accrual in respect of an estate is the amount by which the net value of the estate at the dissolution of a marriage exceeds the net value of that estate at the commencement of the marriage. At the dissolution of a marriage owing to death and subject to the accrual system, the spouse whose estate shows no accrual, or a smaller accrual than the estate of the other spouse, has a claim against the other spouse or his or her deceased estate.It is submitted that some implications of the accrual dispensation, particularly within the context of certain pension and financial products, are still in their discovery phase, nearly 40 years after their introduction. In the absence of any reference to a living annuity in an antenuptial contract, the question was always whether such an investment is subject to the accrual system at divorce or death. In the context of a life assurance policy, the surrender value of the policy was taken into account in the event of divorce, but in the event of death, the question was whether, for accrual purposes, the factor taken into account should be the surrender value or the policy proceeds. As only assets that form part of the estate of a spouse can be considered for accrual purposes, the very nature of a living annuity had to be investigated in the matter of CM v EM (supra). This case was an application for special leave to appeal from the full court in the matter of Emilio Pietro Valfredo Montanari v Charmaine Helen Montanari (Montanari v Montanari).

scholarly journals Socioeconomic status and the likelihood of informal care provision in Japan: An analysis considering survival probability of care recipients

PLoS ONE ◽  
2021 ◽  
Vol 16 (8) ◽  
pp. e0256107
Author(s):  
Yoko Ibuka ◽  
Yui Ohtsu
Keyword(s):  
Socioeconomic Status ◽  
Low Socioeconomic Status ◽  
Financial Assets ◽  
Care Provision ◽  
Term Care ◽  
Low Socioeconomic ◽  
Care Recipients ◽  
Term Insurance ◽  
The Difference

Studies show that the burden of caregiving tends to fall on individuals of low socioeconomic status (SES); however, the association between SES and the likelihood of caregiving has not yet been established. We studied the relationship between SES and the likelihood of adults providing long-term care for their parents in Japan, where compulsory public long-term insurance has been implemented. We used the following six comprehensive measures of SES for the analysis: income, financial assets, expenditure, living conditions, housing conditions, and education. We found that for some SES measures the probability of care provision for parents was greater in higher SES categories than in the lowest category, although the results were not systematically related to the order of SES categories or consistent across SES measures. The results did not change even after the difference in the probability of parents’ survival according to SES was considered. Overall, we did not find evidence that individuals with lower SES were more likely to provide care to parents than higher-SES individuals. Although a negative association between SES and care burden has been repeatedly reported in terms of care intensity, the caregiving decision could be different in relation to SES. Further research is necessary to generalize the results.

scholarly journals Long Term Insurance (LTI) for Addressing Catastrophe Risk

2008 ◽  
Author(s):  
Dwight Jaffee ◽  
Howard Kunreuther ◽  
Erwann Michel-Kerjan
Keyword(s):  
Catastrophe Risk ◽  
Term Insurance
Sign in / Sign up

Export Citation Format

Share Document