Optimal Insurance Contract Design Under Mortality PDF Download

Author: An Chen
Publisher:
ISBN:
Category :
Languages : en
Pages : 24

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Book Description
Some recent literature on optimal pension/life insurance design studies whether contracts with guarantees can be preferred by a utility-maximizing policyholder. In the absence of mortality risk, the main result in the literature (e.g. Doskeland and Nordahl (2008)) is that expected utility theory (EUT) fails to interpret demand for any forms of guarantees, while cumulative prospect theory (CPT) is able to support the demand for guarantees. In the present paper, we incorporate mortality in life/pension insurance contracts and investigate the effects on EUT- and CPT-investors. Our results show that an EUT investor might prefer products with guarantees. For CPT we propose two possibilities to include mortality in the analysis and examine their influence in a simulation based approach.

Author: Amy Finkelstein
Publisher: Columbia University Press
ISBN: 0231538685
Category : Medical
Languages : en
Pages : 161

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Book Description
Addressing the challenge of covering heath care expenses—while minimizing economic risks. Moral hazard—the tendency to change behavior when the cost of that behavior will be borne by others—is a particularly tricky question when considering health care. Kenneth J. Arrow’s seminal 1963 paper on this topic (included in this volume) was one of the first to explore the implication of moral hazard for health care, and Amy Finkelstein—recognized as one of the world’s foremost experts on the topic—here examines this issue in the context of contemporary American health care policy. Drawing on research from both the original RAND Health Insurance Experiment and her own research, including a 2008 Health Insurance Experiment in Oregon, Finkelstein presents compelling evidence that health insurance does indeed affect medical spending and encourages policy solutions that acknowledge and account for this. The volume also features commentaries and insights from other renowned economists, including an introduction by Joseph P. Newhouse that provides context for the discussion, a commentary from Jonathan Gruber that considers provider-side moral hazard, and reflections from Joseph E. Stiglitz and Kenneth J. Arrow. “Reads like a fireside chat among a group of distinguished, articulate health economists.” —Choice

Author: Kathrin Glau
Publisher: Springer
ISBN: 331909114X
Category : Mathematics
Languages : en
Pages : 434

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Book Description
Quantitative models are omnipresent –but often controversially discussed– in todays risk management practice. New regulations, innovative financial products, and advances in valuation techniques provide a continuous flow of challenging problems for financial engineers and risk managers alike. Designing a sound stochastic model requires finding a careful balance between parsimonious model assumptions, mathematical viability, and interpretability of the output. Moreover, data requirements and the end-user training are to be considered as well. The KPMG Center of Excellence in Risk Management conference Risk Management Reloaded and this proceedings volume contribute to bridging the gap between academia –providing methodological advances– and practice –having a firm understanding of the economic conditions in which a given model is used. Discussed fields of application range from asset management, credit risk, and energy to risk management issues in insurance. Methodologically, dependence modeling, multiple-curve interest rate-models, and model risk are addressed. Finally, regulatory developments and possible limits of mathematical modeling are discussed.

Author: Stavros A. Zenios
Publisher: Elsevier
ISBN: 0080548563
Category : Business & Economics
Languages : en
Pages : 685

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Book Description
The Handbooks in Finance are intended to be a definitive source for comprehensive and accessible information in the field of finance. Each individual volume in the series presents an accurate self-contained survey of a sub-field of finance, suitable for use by finance and economics professors and lecturers, professional researchers, graduate students and as a teaching supplement. It is fitting that the series Handbooks in Finance devotes a handbook to Asset and Liability Management. Volume 2 focuses on applications and case studies in asset and liability management.The growth in knowledge about practical asset and liability modeling has followed the popularity of these models in diverse business settings. This volume portrays ALM in practice, in contrast to Volume 1, which addresses the theories and methodologies behind these models. In original articles practitioners and scholars describe and analyze models used in banking, insurance, money management, individual investor financial planning, pension funds, and social security. They put the traditional purpose of ALM, to control interest rate and liquidity risks, into rich and broad-minded frameworks. Readers interested in other business settings will find their discussions of financial institutions both instructive and revealing. * Focuses on pragmatic applications * Relevant to a variety of risk-management industries* Analyzes models used in most financial sectors

Author: SHASHIDHARAN K. KUTTY
Publisher: PHI Learning Pvt. Ltd.
ISBN: 9788120335318
Category : Business & Economics
Languages : en
Pages : 728

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Book Description
With the liberalization of the Indian economy, the insurance sector has opened up, and a lot of new players, both multinationals and Indian companies with foreign collaboration, have entered this arena realizing the vast potential in life insurance. A basic knowledge of life insurance has therefore become essential for the students opting for this course as well as for the practitioners. With this view in mind, Dr. Kutty gives in this text a masterly analysis and a holistic view of every dimension of life insurance management in the sequence of 6Ps—purpose, principles, purchase, products, process and people, in an easy to understand language. He strives to demystify the complex world of life insurance and present its fundamentals to all the readers. Based on the author’s rich experience in insurance sector over the two decades, the text provides new research insights in the areas such as product comparisons, e.g. portfolio approach to purchase of life insurance. It covers the actuarial dimensions of life insurance, with the minimum use of mathematics. Besides, the text discusses in detail the two core operations of an insurance company—underwriting and claims. The hallmark of this book is its attempt to transform the way marketing and operations in life insurance are approached and its sure guidance on how a professional should approach and manage sales, service, process and people. Key Features  Separate chapters are devoted to topics such as general insurance, risk management, underwriting, claims and financial management.  The nature of contracts in general and life insurance contracts in particular is explained.  Different traditional insurance products such as term insurance and non-conventional products like unit-linked policies are dealt with in detail. This book is primarily designed for students of management, commerce and those pursuing specific insurance courses. It can also be profitably used by industry practitioners. Finally, the book will be invaluable to managers of Life Insurance companies, Banks (engaged in Bancassurance), and Security firms.

Author: Urs Birchler
Publisher: Routledge
ISBN: 1134190581
Category : Business & Economics
Languages : en
Pages : 487

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Book Description
This new text book by Urs Birchler and Monika Butler is an introduction to the study of how information affects economic relations. The authors provide a narrative treatment of the more formal concepts of Information Economics, using easy to understand and lively illustrations from film and literature and nutshell examples. The book first covers the economics of information in a 'man versus nature' context, explaining basic concepts like rational updating or the value of information. Then in a 'man versus man' setting, Birchler and Butler describe strategic issues in the use of information: the make-buy-or-copy decision, the working and failure of markets and the important role of outguessing each other in a macroeconomic context. It closes with a 'man versus himself' perspective, focusing on information management within the individual. This book also comes with a supporting website (www.alicebob.info), maintained by the authors.

Author: Robert Black
Publisher: World Bank Publications
ISBN: 1464803684
Category : Medical
Languages : en
Pages : 419

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Book Description
The evaluation of reproductive, maternal, newborn, and child health (RMNCH) by the Disease Control Priorities, Third Edition (DCP3) focuses on maternal conditions, childhood illness, and malnutrition. Specifically, the chapters address acute illness and undernutrition in children, principally under age 5. It also covers maternal mortality, morbidity, stillbirth, and influences to pregnancy and pre-pregnancy. Volume 3 focuses on developments since the publication of DCP2 and will also include the transition to older childhood, in particular, the overlap and commonality with the child development volume. The DCP3 evaluation of these conditions produced three key findings: 1. There is significant difficulty in measuring the burden of key conditions such as unintended pregnancy, unsafe abortion, nonsexually transmitted infections, infertility, and violence against women. 2. Investments in the continuum of care can have significant returns for improved and equitable access, health, poverty, and health systems. 3. There is a large difference in how RMNCH conditions affect different income groups; investments in RMNCH can lessen the disparity in terms of both health and financial risk.

Author: Ephias Makaudze
Publisher: AFRICAN SUN MeDIA
ISBN: 191998545X
Category : Technology & Engineering
Languages : en
Pages : 146

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Book Description
ÿThe international conference on ?Weather index insurance in Africa: lessons learnt and goals for the future? was organised by the Department of Economics, University of the Western Cape, in collaboration with its international partners. The conference attracted over 40 participants drawn from academic and research institutions, insurance practitioners, reinsurers, government policy makers, bankers, agricultural producers, and representatives of non-governmental organisations. The presenters highlighted experiences, challenges and opportunities based on current pilot projects on weather index insurance in many parts of Africa.

Author: Andrew J. G. Cairns
Publisher: Princeton University Press
ISBN: 0691187428
Category : Business & Economics
Languages : en
Pages : 289

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Book Description
The field of financial mathematics has developed tremendously over the past thirty years, and the underlying models that have taken shape in interest rate markets and bond markets, being much richer in structure than equity-derivative models, are particularly fascinating and complex. This book introduces the tools required for the arbitrage-free modelling of the dynamics of these markets. Andrew Cairns addresses not only seminal works but also modern developments. Refreshingly broad in scope, covering numerical methods, credit risk, and descriptive models, and with an approachable sequence of opening chapters, Interest Rate Models will make readers--be they graduate students, academics, or practitioners--confident enough to develop their own interest rate models or to price nonstandard derivatives using existing models. The mathematical chapters begin with the simple binomial model that introduces many core ideas. But the main chapters work their way systematically through all of the main developments in continuous-time interest rate modelling. The book describes fully the broad range of approaches to interest rate modelling: short-rate models, no-arbitrage models, the Heath-Jarrow-Morton framework, multifactor models, forward measures, positive-interest models, and market models. Later chapters cover some related topics, including numerical methods, credit risk, and model calibration. Significantly, the book develops the martingale approach to bond pricing in detail, concentrating on risk-neutral pricing, before later exploring recent advances in interest rate modelling where different pricing measures are important.

Author: Michael J. Brennan
Publisher: Edward Elgar Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 504

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Book Description
This collection of Michael Brennan's writing spans 30 years and reflects the development and growing importance of the field of finance. The papers cover corporate finance, option pricing and derivative markets, interantional finance and the roel of information in financial markets.