Download or read book Option Valuation in Life Insurance written by Ekaterina Avershina and published by GRIN Verlag. This book was released on 2004-10-27 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2004 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 2 (B), LMU Munich (Seminar for Insurance Studies), language: English, abstract: The capital forming life insurance appears currently to be in a very vulnerable state. It was usually an attractive investment opportunity with stable returns comparable to other investment opportunities. In 2000-2002 it was difficult for the life insurance companies to overcome the consequences of the stock market crises, the losses of the insurance companies were enormous. Today there is another challenge for the insurance companies to overcome – the end of the tax privilege starting in 2005. These events bring our attention to the problem of profit sharing. In this paper I show that the changes in the tax law related to the life insurance profits in Germany lead to an increased competition for new customers in 2004 by paying maximum possible bonus rates and to the drastic decrease of it in 2005 which will force the insurers to look for alternative methods to attract new customers like implicit options embedded in the insurance contracts. Such options are liabilities to the issuer, they also constitute a potential danger to the company’s solvency. Therefore, they should be properly valued. Historically that has not been done which turned out to be a disaster for some companies. In the first chapter of this work I introduce the mechanism of profit sharing, its legal framework, the changes in the tax law crucial for the insurance companies and my own model describing how the insurer actually chooses the bonus rate of the insurance contract. Furthermore, the predictions about bonus rates in 2005 and its signification for the options will be made. The second chapter is devoted to the definition, classification and the examples of the most common implicit options on the German life insurance market. The third chapter shows the most common models of the valuation of interest rate and asset options. The tree models will be described particularly in detail. The fourth chapter is dedicated to the models of valuation of the non-European options in life insurance contracts.
Download or read book Implicit Embedded Options in Life Insurance Contracts written by Nils Rüfenacht and published by Physica. This book was released on 2012-04-07 with total page 170 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents a market-consistent valuation framework for implicit embedded options in life insurance contracts. This framework is used to perform an empirical analysis based on more than 110,000 actual and in-force life insurance policies and with a focus on the modeling of interest rates. Its results are the answer to the central question posed in the objectives: What value do the embedded options and guarantees considered have? This question is answered both absolutely and relative to the current policy reserves, from the perspective of the insurer, the policyholder and the shareholder respectively
Download or read book The Fair Value of Insurance Liabilities written by Irwin T. Vanderhoof and published by Springer Science & Business Media. This book was released on 2013-04-17 with total page 389 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book explores theoretical and practical implications of reflecting the fair value of liabilities for insurance companies. In addition, the contributions discuss the disclosure of these values to the financial and regulatory communities and auditing firms which are actually calculating this illusive but important variable. It combines contributions by distinguished practitioners from the insurance, accounting and finance fields, with those of prominent academics. One of the central themes of the collection is that adequate disclosure of the true economic value of insurance company liabilities is both possible and desirable. Wherever possible, the insurance valuation process is wedded with modern financial theory. For example, the use of option pricing theory is applied to insurance companies, where the true value of the firm's liabilities is a critical variable. Methods such as cash flow, earned profit and indirect discount are explored.
Download or read book A generic methodology for the valuation of life insurance contracts and embedded options written by Daniela Bergmann and published by . This book was released on 2008 with total page 105 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Hidden Value in Your Life Insurance written by Darwin M. Bayston and published by Abbott Press. This book was released on 2016-06-21 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: Thirty-three percent of Americans have no retirement savings or pension, according to the Federal Reserve. No wonder so many of us are nervous about our ability to retire. Fortunately, there is an asset that many American seniors have at their fingertips that they can use to fund their retirements. Most of them dont even realize it. Darwin M. Bayston, a chartered financial analyst, and Daryn N. Teague, a public relations consultant who works with providers of legal and financial services, created this simple consumer guide to help people unlock the hidden value in their life insurance policies. Learn how to: find out the things that insurance companies dont want you to know; improve your quality of life in retirement; eliminate what could be an unnecessary expense; and reduce stress by gaining peace of mind about retirement. Some life insurance companies actually prohibit the agent who sold you a policy from telling you about the strategies revealed in this guide. Find out about all of the options at your disposal by learning about The Hidden Value in Your Life Insurance.
Download or read book Valuation of Life Insurance Contracts with Surrender Options written by Haim Reisman and published by . This book was released on 2000 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper derives a recursive algorithm for pricing life insurance policies in the case where interest rates are stochastic and the insured can surrender his policy for cash at any time at a pre-specified surrender value. This is done under the assumption that the insured is rational, and alternatively, under the assumption that the surrender rate is an exogenously specified function of the loss from a non-optimal surrender. The pricing methodology is adapted from the literature on valuation of defaultable securities, where default is analogous to the death of the insured.
Download or read book Market Valuation Methods in Life and Pension Insurance written by Thomas Møller and published by Cambridge University Press. This book was released on 2007-01-18 with total page 263 pages. Available in PDF, EPUB and Kindle. Book excerpt: In classical life insurance mathematics the obligations of the insurance company towards the policy holders were calculated on artificial conservative assumptions on mortality and interest rates. However, this approach is being superseded by developments in international accounting and solvency standards coupled with other advances enabling a market-based valuation of risk, i.e., its price if traded in a free market. The book describes these approaches, and is the first to explain them in conjunction with more traditional methods. The various chapters address specific aspects of market-based valuation. The exposition integrates methods and results from financial and insurance mathematics, and is based on the entries in a life insurance company's market accounting scheme. The book will be of great interest and use to students and practitioners who need an introduction to this area, and who seek a practical yet sound guide to life insurance accounting and product development.
Download or read book Implicit Options in Life Insurance written by Nadine Verena Gatzert and published by . This book was released on 2007 with total page 167 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Life Insurance Modified Endowments written by Christian J. DesRochers and published by Society of Actuaries. This book was released on 2004 with total page 356 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Equity Linked Life Insurance written by Alexander Melnikov and published by CRC Press. This book was released on 2017-09-07 with total page 213 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on the application of the partial hedging approach from modern math finance to equity-linked life insurance contracts. It provides an accessible, up-to-date introduction to quantifying financial and insurance risks. The book also explains how to price innovative financial and insurance products from partial hedging perspectives. Each chapter presents the problem, the mathematical formulation, theoretical results, derivation details, numerical illustrations, and references to further reading.
Download or read book Valuation of the Surrender Option Embedded in Equity linked Life Insurance written by Lieh-Ming Lo and published by . This book was released on 2004 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Market Consistent Actuarial Valuation written by Mario V. Wüthrich and published by Springer Science & Business Media. This book was released on 2010-09-02 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is a challenging task to read the balance sheet of an insurance company. This derives from the fact that different positions are often measured by different yardsticks. Assets, for example, are mostly valued at market prices whereas liabilities are often measured by established actuarial methods. However, there is a general agreement that the balance sheet of an insurance company should be measured in a consistent way. Market-Consistent Actuarial Valuation presents powerful methods to measure liabilities and assets in a consistent way. The mathematical framework that leads to market-consistent values for insurance liabilities is explained in detail by the authors. Topics covered are stochastic discounting with deflators, valuation portfolio in life and non-life insurance, probability distortions, asset and liability management, financial risks, insurance technical risks, and solvency.
Download or read book Valuation of Life Insurance Liabilities written by Louis J. Lombardi and published by ACTEX Publications. This book was released on 2006 with total page 301 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Investment Guarantees written by Mary Hardy and published by John Wiley & Sons. This book was released on 2003-04-07 with total page 306 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive guide to investment guarantees in equity-linked life insurance Due to the convergence of financial and insurance markets, new forms of investment guarantees are emerging which require financial service professionals to become savvier in modeling and risk management. With chapters that discuss stock return models, dynamic hedging, risk measures, Markov Chain Monte Carlo estimation, and much more, this one-stop reference contains the valuable insights and proven techniques that will allow readers to better understand the theory and practice of investment guarantees and equity-linked insurance policies. Mary Hardy, PhD (Waterloo, Ontario, Canada), is an Associate Professor and Associate Chair of Actuarial Science at the University of Waterloo and is a Fellow of the Institute of Actuaries and an Associate of the Society of Actuaries, where she is a frequent speaker. Her research covers topics in life insurance solvency and risk management, with particular emphasis on equity-linked insurance. Hardy is an Associate Editor of the North American Actuarial Journal and the ASTIN Bulletin and is a Deputy Editor of the British Actuarial Journal.
Download or read book Guide To Understanding Life Insurance written by Virginia B. Morris and published by Lightbulb Press, Inc.. This book was released on 2014-01-10 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: Index Investing is a 24 page booklet that explains what indexes are, the information they provde, and how they serve as the basis for several investment products.
Download or read book Implicit Embedded Options in Life Insurance Contracts written by Nils Rüfenacht and published by Springer Science & Business Media. This book was released on 2012-04-03 with total page 187 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents a market-consistent valuation framework for implicit embedded options in life insurance contracts. This framework is used to perform an empirical analysis based on more than 110,000 actual and in-force life insurance policies and with a focus on the modeling of interest rates. Its results are the answer to the central question posed in the objectives: What value do the embedded options and guarantees considered have? This question is answered both absolutely and relative to the current policy reserves, from the perspective of the insurer, the policyholder and the shareholder respectively
Download or read book The Banking Industry Guide Key Insights for Investment Professionals written by Ryan C. Fuhrmann and published by CFA Institute. This book was released on 2017 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
