Techniques to Create Efficiencies in the Secondary Market for Life Insurance. By Hui Shan, ASA, MAAA, Ph.D Candidate University of Connecticut. Table of Contents. Background Current Inefficiencies Challenges Solutions for Investors Solutions for Insurance Companies
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
By Hui Shan, ASA, MAAA, Ph.D Candidate
University of Connecticut
Solutions for Investors for Life Insurance
Pn– Premium payment at the beginning of the n-th period
DB – Death benefit
– Conditional death probability, probability that an individual age x dies between x+n-1 and x+n.
– Cumulative persistency probability, probability of surviving through the n-th period.
– The discount factor for the n-th period.
Improvement in Fair Value Pricing for Life Insurance
If the true LE varies from the expected:Return Rate Distribution -
Portfolio Value Distribution -
Observations for Life Insurance
Solutions for for Life Insurance
Solutions for Reinsurers for Life Insurance