A sensitivity analysis concept is introduced for prospective reserves of individual life insurance contracts as deterministic mappings of the actuarial assumptions interest rate, mortality probability, disability probability, etc. Upon modeling these assumptions as functions on a real time line, the prospective reserve is here a mapping with infinite dimensional domain. Inspired by the common i...

The main role of the insurance sector is coverage risks through pooling techniques. Against payment a premium, company compensates for unexpected losses, including catastrophic events and pandemics. However, differently from event, COVID-19 pandemic has highlighted that global impact on economic financial activities highly correlated. itself been strongly affected both by exponential growth cla...

This article makes the case that, as an open, ongoing defined benefit (DB) pension scheme, Universities Superannuation Scheme (USS) once provided a model of reciprocity between generations but no longer does. It begins with account contribution (DC) scheme which preceded USS and its investment risk relatively low income that was created to rectify. shows how funding, investment, valuation durin...

Deductibles in health insurance are often regarded as a means to contain health care costs when individuals exhibit moral hazard. However, in the absence of moral hazard, voluntarily chosen deductibles may instead lead to self-selection into different insurance contracts. We use a set of new variables in the German Socioeconomic Panel for the years 2002, 2004, and 2006 that measure individual h...

We study the connection between banking crises and non-life insurance consumption in 139 countries from 1988 to 2010. After controlling for output, we find a negative excess decline in non-life insurance consumption after the occurrence of a banking crisis only in countries heavily depending on bank credit. The primary contributing factor is motor insurance which loses 113% of the annual premiu...

Some models of provider behavior predict that physicians, like other experts, may respond dysfunctionally to financial incentives by recommending unnecessary treatment. We empirically test this relationship using data from inpatient hospitalizations surrounding a 2003 Colorado auto insurance reform. The reform shifted a large fraction of auto injury patients from coverage through auto insurers ...

We construct a fully specified extensive form game that captures competitive markets with adverse selection. In particular, it allows firms to offer any finite set of contracts, so that cross-subsidization is not ruled out. Moreover, firms can withdraw from the market after initial contract offers have been observed. We show that a subgame perfect equilibrium always exists and that, in fact, wh...

We estimate the effect of social capital on the ability of households to insure consumption after unexpected negative shocks. Many theoretical models argue that strong ties to extended family members and to one’s community help protect families when an adult becomes ill or disabled. Using household-level longitudinal data on Indonesian families, we test whether consumption declines less after a...

We develop a pair of risk measures for the universe of health and longevity products that includes life insurance, annuities, and supplementary health insurance. Health delta measures the differential payoff that a policy delivers in poor health, while mortality delta measures the differential payoff that a policy delivers at death. Optimal portfolio choice simplifies to the problem of choosing...