scholarly journals On age difference in joint lifetime modelling with life insurance annuity applications

2018 ◽  
Vol 12 (2) ◽  
pp. 350-371 ◽  
Author(s):  
François Dufresne ◽  
Enkelejd Hashorva ◽  
Gildas Ratovomirija ◽  
Youssouf Toukourou
Keyword(s):  
Life Insurance ◽  
Joint Distribution ◽  
Goodness Of Fit ◽  
Married Couple ◽  
Insurance Market ◽  
Age Difference ◽  
Insurance Company ◽  
The Past ◽  
Copula Approach ◽  
Using Data

AbstractInsurance and annuity products covering several lives require the modelling of the joint distribution of future lifetimes. In the interest of simplifying calculations, it is common in practice to assume that the future lifetimes among a group of people are independent. However, extensive research over the past decades suggests otherwise. In this paper, a copula approach is used to model the dependence between lifetimes within a married couple using data from a large Canadian insurance company. As a novelty, the age difference and the gender of the elder partner are introduced as an argument of the dependence parameter. Maximum likelihood techniques are thus implemented for the parameter estimation. Not only do the results make clear that the correlation decreases with age difference, but also the dependence between the lifetimes is higher when husband is older than wife. A goodness-of-fit procedure is applied in order to assess the validity of the model. Finally, considering several annuity products available on the life insurance market, the paper concludes with practical illustrations.

scholarly journals Interaction effects between dynamic hybrid products and traditional deferred annuities in the German life insurance market

2021 ◽  
Author(s):  
Nikolaj Moretti ◽  
Johannes Bartels
Keyword(s):  
Life Insurance ◽  
Interaction Effects ◽  
Insurance Market ◽  
Insurance Company ◽  
Hybrid Products ◽  
Negative Effect ◽  
German Life ◽  
Dynamic Hybrid ◽  
Using Data ◽  
Deferred Annuity

AbstractDynamic hybrid products emerged in 2007 and are now well established in the German life insurance market. In this article, we study interaction effects between dynamic hybrid products and traditional deferred annuity contracts, that are sold by the same insurance company. The key question we investigate is whether the presence of dynamic hybrid products has a negative effect on the payout of traditional insurance products. We do so by using data drawn from a Monte Carlo simulation that is based on a model presented in this article. These data reveal that dynamic hybrid products reduce the payment to policyholders of traditional deferred annuities via the channel of surplus participation.

Indian Life Insurance Market and Corporate Performances: A Study of Selected Firms

2016 ◽  
Vol 4 (1) ◽  
Author(s):  
Joy Chakraborty ◽  
Partha Pratim Sengupta
Keyword(s):  
Market Share ◽  
Life Insurance ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Insurance Sector ◽  
Life Insurers ◽  
Company Limited

In the pre-reform era, Life Insurance Corporation of India (LICI) dominated the Indian life insurance market with a market share close to 100 percent. But the situation drastically changed since the enactment of the IRDA Act in 1999. At the end of the FY 2012-13, the market share of LICI stood at around 73 percent with the number of players having risen to 24 in the countrys life insurance sector. One of the reasons for such a decline in the market share of LICI during the post-reform period could be attributed to the increasing competition prevailing in the countrys life insurance sector. At the same time, the liberalization of the life insurance sector for private participation has eventually raised issues about ensuring sound financial performance and solvency of the life insurance companies besides protection of the interest of policyholders. The present study is an attempt to evaluate and compare the financial performances, solvency, and the market concentration of the four leading life insurers in India namely the Life Insurance Corporation of India (LICI), ICICI Prudential Life Insurance Company Limited (ICICI PruLife), HDFC Standard Life Insurance Company Limited (HDFC Standard), and SBI Life Insurance Company Limited (SBI Life), over a span of five successive FYs 2008-09 to 2012-13. In this regard, the CARAMELS model has been used to evaluate the performances of the selected life insurers, based on the Financial Soundness Indicators (FSIs) as published by IMF. In addition to this, the Solvency and the Market Concentration Analyses were also presented for the selected life insurers for the given period. The present study revealed the preexisting dominance of LICI even after 15 years since the privatization of the countrys life insurance sector.

scholarly journals ANALYSIS OF COMPETITIVE POSITIONS OF INSURANCE COMPANIES IN THE NON-LIFE INSURANCE MARKET IN UKRAINE

2019 ◽  
pp. 88-94
Author(s):  
O. Pakhnenko ◽  
O. Zhuravka ◽  
V. Podhorna ◽  
A. Sukhomlyn
Keyword(s):  
Market Share ◽  
Life Insurance ◽  
Motor Vehicle ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Insurance Premiums ◽  
Property Insurance ◽  
Financial Condition

The paper explores the practical aspects of forming a competitive environment in the non-life insurance market of Ukraine and analyzes the competitiveness and financial performance of leading insurance companies. Based on the analysis of non-life insurance market concentration indicators, the authors concluded that there is no clear leader in this market, the level of market concentration is negligible. Based on the analysis of non-life insurance market leaders by volume of gross insurance premiums in the whole market and by main types of non-life insurance (CASCO, motor vehicle liability insurance, property insurance, fire and catastrophe risk insurance, CARGO, health insurance) the authors found that the leadership of insurance companies in the market does not mean their leadership in all types of non-life insurance; some insurance companies specialize in certain types of insurance and not being leaders in the insurance market at all occupy leading positions in certain segments of non-life insurance market. In order to provide a general assessment of the competitiveness of individual insurance companies in the non-life insurance market, the following indicators were selected: the volume of gross insurance premiums, gross insurance payments, insurance reserves and the amount of equity. In order to assess the size of market share of an individual insurance company in a more objective way, it is suggested to calculate the average share of the insurance company. The calculations made it possible to identify the leaders of the non-life insurance market in 2018 and to explore the dynamics of changes in their competitive position during 2016-2018. For the three insurance companies that have been identified as the leaders of the Ukrainian market non-life insurance in 2018 (“UNIKA”, “AXA Insurance” and “PZU Ukraine”), the authors analyzed the main indicators of their financial condition, namely the profitability of insurance services, profitability of sales, return on assets, return on equity, overall liquidity, absolute liquidity and autonomy. It was found that all the analyzed insurance companies are profitable, however, among the three leading Ukrainian insurance companies, the most effective in 2018 was the insurance company “PZU Ukraine” and the least profitable – “UNIKA”. Keywords: competitiveness, insurance company, market concentration, market share, competition.

Loans and Mortgages as Investments for Life Funds

1928 ◽  
Vol 3 (02) ◽  
pp. 91-104
Author(s):  
W. Murray Simpson
Keyword(s):  
Life Insurance ◽  
Income Tax ◽  
Stock Exchange ◽  
The Self ◽  
Insurance Companies ◽  
Insurance Company ◽  
The Past

The scope of Insurance has within the past few years widened to such an extent that it is no longer sufficient for a member of the profession to be an expert in his own particular section. By the process of amalgamation the modern Composite Company has come into existence, and the time is past when a keen member of the Staff of a large Insurance Company is content to sit in the self-contained section of his Office—Life, Fire, or Accident—and not to know what is going on outside his own water-tight Department.It is not an easy matter for Life Insurance Companies nowadays to find remunerative investments for their funds, with Income Tax at its present figure, and although large sums are invested in Stock Exchange Securities, which do not come within the scope of this paper, further large amounts are advanced on security of mortgages of property, reversions, life interests, Stocks and Shares, etc., etc., and it is with these advances that I propose to deal.

scholarly journals Background of insurance service and strategy for particular customer circles

2016 ◽  
Vol 1 (1) ◽  
pp. 30-35
Author(s):  
Maxim Korneyev ◽  
German Stoianov ◽  
Anton Grytsenko
Keyword(s):  
Life Insurance ◽  
Methodological Approach ◽  
Sales Management ◽  
Domestic Market ◽  
Insurance Market ◽  
Insurance Companies ◽  
Market Development ◽  
Insurance Company ◽  
Low Level ◽  
The Relationship

The article is dedicated to the development of services and conditions of cooperation directed to insurance in the premium circle of clients under globalization. The circle of premium customers in addition to their requirements was described. Extended types of insurance are disposed in the article in order to develop the relationship between customer and insurer for most efficient partnership. The main reasons which caused the low level of insurance market development in Ukraine were proposed both with theoretical variety of their decisions. Proposals about methodical necessity of separating life and non-life insurance companies in the domestic market are disposed due to recommendations of the strategical development of insurance company. Methodological approach to the customer attraction procedure is represented for insurance sales management improvement.

scholarly journals Consumer Buying Behaviour towards Life Insurance Policies in Thanjavur City

2019 ◽  
Vol 8 (2S4) ◽  
pp. 727-730
Keyword(s):  
Life Insurance ◽  
Global Market ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Indian Market ◽  
Insurance Policies ◽  
Major Player ◽  
Buying Behaviour ◽  
Indian Insurance

The typical promotion of life insurance policies is very less in India than any other countries. Despite being among one of the world’s highest population, the insurance industry in India serves as a high catchment for several foreign and Indian insurance companies in escalating their promotion and share in the market, the typical selling is much lesser. Prior to the aperture of Indian insurance market for the invasion of foreign insurance companies, Life Insurance Corporation (LIC) was the only insurance company that dealt with Life Insurance. Furthermore by giving opportunity for other private insurance companies in Indian market, all the global giants in life insurance has commenced business in our country. Using their knowledge about the global market and their associations, these multinational companies have offered numerous lucrative schemes to attract consumers at various levels in India but regrettably unsuccessful to acquire the main share in the Indian market. Despite all the odds, still LIC is the major player in the life insurance market with approximately more than sixty five percent of share in the market. Still it is a wonder about the reason behind why the consumers in India are not convinced of on various private companies and why still majority of the people in India have not insured their life. This research is an attempt to examine the factors that determines the consumer buying behavior of life insurance policies. This paper emphasizes on the consumers buying behaviour of life insurance policies in Thanjavur City. 150 samples were chosen by convenience sampling technique. A structured questionnaire was administered for this purpose and the data collected were analysed using chi-square and regression.

scholarly journals Predicting Drought and Subsidence Risks in France

2021 ◽  
Author(s):  
Arthur Charpentier ◽  
Molly Rose James ◽  
Hani Ali
Keyword(s):  
Climate Change ◽  
Random Forests ◽  
Statistical Models ◽  
Economic Cost ◽  
Economic Consequences ◽  
Insurance Market ◽  
The Past ◽  
Using Data ◽  
Underlying Mechanisms ◽  
Climatic Information

Abstract. The economic consequences of drought episodes are increasingly important, although they are often difficult to apprehend in part because of the complexity of the underlying mechanisms. In this article, we will study one of the consequences of drought, namely the risk of subsidence (or more specifically clay shrinkage induced subsidence), for which insurance has been mandatory in France for several decades. Using data obtained from several insurers, representing about a quarter of the household insurance market, over the past twenty years, we propose some statistical models to predict the frequency but also the intensity of these droughts, for insurers, showing that climate change will have probably major economic consequences on this risk. But even if we use more advanced models than standard regression-type models (here random forests to capture non linearity and cross effects), it is still difficult to predict the economic cost of subsidence claims, even if all geophysical and climatic information is available.

Improvement of Life Insurance Policyholders’ Protection Corporation with Emphasis on Consistency with the Vietnamese Market

2015 ◽  
pp. 5-27
Author(s):  
Kubo Hideya ◽  
Nga Nguyen
Keyword(s):  
Interest Rates ◽  
Life Insurance ◽  
Information Disclosure ◽  
Large Scale ◽  
Insurance Market ◽  
Insurance Companies ◽  
Financial Resources ◽  
Insurance Company ◽  
Key Points ◽  
In Series

What is needed for the Life Insurance Policyholders’ Protection Fund in Vietnam is to review and improve its system so that it is consistent with any anticipated changes of the insurance market in Vietnam, by taking advantage of the experience of the Life Insurance Policyholders’ Protection Corporation in Japan where large scale bankruptcies have occurred in series. More specifically, the key points are: (i) introducing a scheme where contract transfer is proceeded with even in the event that no savior insurance company steps forward, and placing emphasis on the indemnification of coverage-based insurance products in which the market is expected to grow, (ii) increasing the burden on policyholders of conventional deposit-based products, for example, a reduction of assumed interest rates, in an effort to increase necessary financial resources, (iii) developing professionals who are specialized in evaluating the values of bankrupt insurance companies and (iv) promoting thorough information disclosure and validating the soundness index.

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