What Transaction Costs are Acceptable in Life Insurance Products from the Policyholders' Viewpoint?

Purpose - The purpose of this paper is to analyze what transaction costs are acceptable for customers in different investments. In this study, two life insurance contracts, a mutual fund and a risk-free investment, as alternative investment forms are considered. The first two products under scrutiny are a life insurance investment with a point-to-point capital guarantee and a participating contract with an annual interest rate guarantee and participation in the insurer's surplus. The policyholder assesses the various investment opportunities using different utility measures. For selected types of risk profiles, the utility position and the investor's preference for the various investments are assessed. Based on this analysis, the authors study which cost levels can make all of the products equally rewarding for the investor. Design/methodology/approach - The paper notes the risk-neutral valuation calibration using empirical data utility and performance measurement dynamics underlying: geometric Brownian motion numerical examples via Monte Carlo simulation. Findings - In the first step, the financial performance of the various saving opportunities under different assumptions of the investor's utility measurement is studied. In the second step, the authors calculate the level of transaction costs that are allowed in the various products to make all of the investment opportunities equally rewarding from the investor's point of view. A comparison of these results with transaction costs that are common in the market shows that insurance companies must be careful with respect to the level of transaction costs that they pass on to their customers to provide attractive payoff distributions. Originality/value - To the best of the authors' knowledge, their research question - i.e. which transaction costs for life insurance products would be acceptable from the customer's point of view - has not been studied in the above described context so far.

Analysis of the claims data of a life insurance portfolio

Mestrado em Ciências Actuariais

An essay on probabilities : and their application to life contingencies and insurance offices /

Mode of access: Internet.

Insurance and transport law : controlling insurance contract terms : Section 54 of the Insurance Contracts Act – compliance, recovery and accountability

Commonwealth legislation covering insurance contracts contains numerous provisions designed to control the operation and effect of terms in life and general insurance contracts. For example, the Life Insurance Act 1995 (Cth) contains provisions regulating the consequences attendant upon incorrect statements in proposals [1] and non-payment of premiums, [2] provides that an insurer may only exclude liability in the case of suicide if it has made express provision for such contingency in its policy, [3] and severely restricts the efficacy of conditions as to war risks. [4] The Insurance Contracts Act 1984 (Cth) is even more intrusive and has a major impact upon contractual provisions in the general insurance field. It is beyond the scope of this note to explore all of these provisions in any detail but examples of controls and constraints imposed upon the operation and effect of contractual provisions include the following. A party is precluded from relying upon a provision in a contract of insurance if such reliance would amount to a failure to act with the utmost good faith. [5] Similarly, a policy provision which requires differences or disputes arising out of the insurance to be submitted to arbitration is void, [6] unless the insurance is a genuine cover for excess of loss over and above another specified insurance. [7] Similarly clause such as conciliation clauses, [8] average clauses, [9] and unusual terms [10] are given qualified operation. [11] However the provision in the Insurance Contracts Act that has the greatest impact upon, and application to, a wide range of insurance clauses and claims is s 54. This section has already generated a significant volume of case law and is the focus of this note. In particular this note examines two recent cases. The first, Johnson v Triple C Furniture and Electrical Pty Ltd [2012] 2 Qd R 337, (hereafter the Triple C case), is a decision of the Queensland Court of Appeal; and the second, Matthew Maxwell v Highway Hauliers Pty Ltd [2013] WASCA 115, (hereafter the Highway Hauliers case), is a decision of the Court of Appeal in Western Australia. This latter decision is on appeal to the High Court of Australia. The note considers too the decision of the New South Wales Court of Appeal in Prepaid Services Pty Ltd v Atradius Credit Insurance NV [2013] NSWCA 252 (hereafter the Prepaid Services case).These cases serve to highlight the complex nature of s 54 and its application, as well as the difficulty in achieving a balance between an insurer and an insured's reasonable expectations.

Insecurity, a challenge to America; a study of social insurance in the United States and abroad,

Mode of access: Internet.

British offices life annuity tables, 1893.

Mode of access: Internet.

Report of the Superintendent of Insurance for Canada. : Rapport du Surintendant des assurances du Canada.

English title only, 1945-1954.

Business insurance; insured business continuation plans for proprietorships, partnerships, and close corporations.

Mode of access: Internet.

A report in support of proposed amendments to article 5, section 81, of the New York Insurance Law : submitted to the Joint Legislative Committee on Insurance rates and regulation of the State of New York /

Mode of access: Internet.

Rates and values, Modified life, preferred, select, endowment at age 60, 65, 70, preferred, select, ordinary, special; corresponding premiums for disability and double indemnity.

Mode of access: Internet.

Selling insurance by written program /

Mode of access: Internet.

A chronological list of books and pamphlets, relating to the doctrine of chances and the rate of mortality, annuities, reversions, marine and fire insurances, and life-assurance; with the titles of the several parliamentary reports connected with friendly societies, and of publications relating to particular life-assurance offices.

Published also in the author's A familiar explanation of the nature, advantages, and importance of assurance upon lives ... London, 1842. 19 1/2 cm. p. 183-221.

Best's insurance reports.

"Upon all legal reserve companies, assessment associations and fraternal societies transacting business in the United States."

Report of audit and investigation ... and memorandum in re Nevada Industrial Insurance Act : Reviewing the operation of the Act for a period of thirty months, July 1, 1913 to December 31, 1915.

Chiefly tables.

Survey of the Washington industrial insurance law : January, 1919 /

Mode of access: Internet.