scholarly journals Adverse Selection in the Annuity Market with Sequential and Simultaneous Insurance Demand

2002 ◽  
Author(s):  
Johann K. Brunner ◽  
Susanne Pech
Keyword(s):  
Adverse Selection ◽  
Insurance Demand ◽  
Annuity Market

Adverse Selektion light – Der Einfluss des Flat-Rate-Bias auf das Tarifwahlverhalten bei Krankenversicherungen / Adverse Selection Light – How can flat-rate bias influence insurance demand

ORDO ◽  
2012 ◽  
Vol 63 (1) ◽  
Author(s):  
Florian Drevs ◽  
Tristan Nguyen
Keyword(s):  
Adverse Selection ◽  
Insurance Demand ◽  
Flat Rate

ZusammenfassungMit dem GKV-Wettbewerbsstärkungsgesetz können die gesetzlichen Krankenversicherungen seit 2007 Tarife mit einer Kostenbeteiligung anbieten. Bei diesen optional zu den Tarifen mit voller Kostendeckung wählbaren Tarifen wird der Versicherte im Leistungsfall finanziell an den Kosten beteiligt. Im Gegenzug profitiert der Versicherte von Beitragsrückerstattungen. Ein wichtiges Ergebnis aus der versicherungswissen-schaftlichen Theorie besagt, dass es den Versicherern durch die Wahl eines sog. Trennungsgrads gelingt, die guten und die schlechten Risiken voneinander zu trennen und damit das Problem der adversen Selektion zu lösen.Bislang hat jedoch lediglich 1 % der gesetzlich Versicherten in Deutschland einen Kostenbeteiligungstarif anstelle eines Tarifs mit voller Kostendeckung gewählt. Diese Beobachtung könnte auf den sog. Flat-Rate-Bias bei der Versicherungsnachfrage zurückzuführen sein. Auf Basis einer empirischen Studie unter deutschen Versicherten zeigen wir, dass bei den guten Risiken eine Art Vollkaskomentalität herrscht und damit ein Flat-Rate-Bias bei der Wahl von Krankenversicherungstarifen besteht. Bei der Berücksichtigung des Flat-Rate-Bias müssten aus aktuarieller Sicht im Tarif mit voller Kostendeckung höhere Beiträge fällig werden bzw. der Bonustarif attraktiver gestaltet werden, um die guten Risiken von den schlechten Risiken zu trennen.

scholarly journals Evidence on Annuity Choices in Chile

2020 ◽  
Vol 19 (1) ◽  
pp. 33 ◽  
Author(s):  
José Luis Ruiz
Keyword(s):  
Labor Market ◽  
Adverse Selection ◽  
Pension System ◽  
Poor Health ◽  
Traditional View ◽  
Annuity Market ◽  
Using Data ◽  
Sales Agents ◽  
Minimum Pension

This study analyzes the empirical determinants of the annuity choice using data on retirees from the Chilean labor market. We find that sales agents, knowledge about the pension system, and greater education will be associated with an increase in the annuitization probability. Also, we expect that people in poor health are less likely to annuitize, which is supportive of the traditional view of adverse selection in the annuity market. Finally, we analyze the effects on annuity choices of the introduction of a Minimum Pension Guarantee.

scholarly journals Price efficiency in the Dutch Annuity Market

2013 ◽  
Vol 14 (1) ◽  
pp. 1-18 ◽  
Author(s):  
EDMUND CANNON ◽  
RALPH STEVENS ◽  
IAN TONKS
Keyword(s):  
Life Expectancy ◽  
The Netherlands ◽  
Adverse Selection ◽  
International Standards ◽  
Price Efficiency ◽  
Annuity Market ◽  
Conflicting Evidence

AbstractWe provide the first analysis of annuity rates in the Netherlands for the period 2001–2012. During this period, the number of annuity providers was high and stable, and we find that falls in annuity rates can be explained entirely by changes in yields and life expectancy. We show that annuitants could have increased their annuity income by about 5%, by shopping around and purchasing their annuities from alternative providers. Money's worth calculations show that the market is efficient by international standards, with a money's worth above 0.9 for the whole period and close to unity by the end of the period. We present conflicting evidence on the existence of adverse selection because although we find money's worths are inversely related to age of purchase, we find that they are positively related to size of purchase.

Overview of the Issue

2006 ◽  
Vol 5 (2) ◽  
pp. i-ii
Author(s):  
JEFFREY BROWN ◽  
STEVEN HABERMAN ◽  
MOSHE MILEVSKY ◽  
MIKE ORSZAG
Keyword(s):  
Adverse Selection ◽  
Competitive Market ◽  
High Rate ◽  
Research Articles ◽  
Defined Contribution ◽  
Review Section ◽  
Annuity Market

The second issue of the fifth volume of the JPEF features 4 research articles, and a book review section. The first article is by Estelle James, Guillermo Martinez and Augusto Iglesias and looks at: “The payout stage in Chile: Who annuitizes and why?” Low rates of voluntary annuitization are a major issue in defined contribution pension designs. Yet, in Chile, about 2/3 of individuals choose to annuitize instead of taking programmed withdrawals. The paper examines the reasons for this high rate of annuitization and concludes that it is due to the combination of a competitive market in annuities and the relatively constrained alternatives available to individuals. The paper nevertheless finds some evidence of adverse selection in the Chile annuity market.

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