Enhanced annuities and the impact of individual underwriting on an insurer's profit situation
Journal
Insurance: Mathematics and Economics
ISSN
0167-6687
ISSN-Digital
1873-5959
Type
journal article
Date Issued
2008-08-01
Author(s)
Hoermann, Gudrun
;
Ruß, Jochen
Abstract
We analyze the effect of enhanced annuities on an insurer engaging in individual underwriting. We use a frailty model for the heterogeneity of the insured population and model the individual underwriting by a random variable that positively correlates with the corresponding frailty factor. For a given annuity portfolio, we analyze the effect of the quality of the underwriting on the insurer's profit/loss situation and the impact of adverse selection effects.
Language
English
Keywords
Enhanced Annuity
Individual Underwriting
Adverse Selection
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Elsevier
Publisher place
Amsterdam
Volume
43
Number
1
Start page
150
End page
157
Pages
8
Subject(s)
Division(s)
Eprints ID
43796