scholarly journals Pareto-Optimal Insurance Contracts With Premium Budget and Minimum Charge Constraints

2019 ◽  
Author(s):  
Alexandru Vali Asimit ◽  
Ka Chun Cheung ◽  
Wing Fung Chong ◽  
Junlei Hu
Keyword(s):  
Pareto Optimal ◽  
Optimal Insurance ◽  
Insurance Contracts

scholarly journals Pareto-optimal insurance contracts with premium budget and minimum charge constraints

2020 ◽  
Vol 95 ◽  
pp. 17-27 ◽  
Author(s):  
Alexandru V. Asimit ◽  
Ka Chun Cheung ◽  
Wing Fung Chong ◽  
Junlei Hu
Keyword(s):  
Pareto Optimal ◽  
Optimal Insurance ◽  
Insurance Contracts

scholarly journals Optimal Insurance Coverage under Bonus-Malus Contracts

2001 ◽  
Vol 31 (1) ◽  
pp. 175-186 ◽  
Author(s):  
Jon Holtan
Keyword(s):  
Expected Utility ◽  
Insurance Coverage ◽  
Theoretical Framework ◽  
Point Of View ◽  
Pareto Optimal ◽  
Utility Model ◽  
Optimal Insurance ◽  
Insurance Contracts ◽  
Classical Studies ◽  
Expected Utility Model

AbstractThe paper analyses the questions: Should – or should not – an individual buy insurance? And if so, what insurance coverage should he or she prefer? Unlike classical studies of optimal insurance coverage, this paper analyses these questions from a bonus-malus point of view, that is, for insurance contracts with individual bonus-malus (experience rating or no-claim) adjustments. The paper outlines a set of new statements for bonus-malus contracts and compares them with corresponding classical statements for standard insurance contracts. The theoretical framework is an expected utility model, and both optimal coverage for a fixed premium function and Pareto optimal coverage are analyzed. The paper is an extension of another paper by the author, see Holtan (2001), where the necessary insight to – and concepts of – bonus-malus contracts are outlined.

scholarly journals OPTIMAL ASSET ALLOCATION IN LIFE INSURANCE: THE IMPACT OF REGULATION

2016 ◽  
Vol 46 (3) ◽  
pp. 605-626 ◽  
Author(s):  
An Chen ◽  
Peter Hieber
Keyword(s):  
Life Insurance ◽  
Asset Allocation ◽  
Regulatory Policy ◽  
Capital Requirements ◽  
Insurance Company ◽  
Traffic Light ◽  
Optimal Insurance ◽  
Insurance Contracts ◽  
Solvency Capital ◽  
The Impact

AbstractIn a typical equity-linked life insurance contract, the insurance company is entitled to a share of return surpluses as compensation for the return guarantee granted to the policyholders. The set of possible contract terms might, however, be restricted by a regulatory default constraint — a fact that can force the two parties to initiate sub-optimal insurance contracts. We show that this effect can be mitigated if regulatory policy is more flexible. We suggest that the regulator implement a traffic light system where companies are forced to reduce the riskiness of their asset allocation in distress. In a utility-based framework, we show that the introduction of such a system can increase the benefits of the policyholder without deteriorating the benefits of the insurance company. At the same time, default probabilities (and thus solvency capital requirements) can be reduced.

Optimal Insurance Contracts with Limited Commitment and Unobservable Disability

2019 ◽  
Author(s):  
Kyoung Jin Choi ◽  
Junkee Jeon ◽  
Ho-Seok Lee ◽  
Hsuan-Chih Lin
Keyword(s):  
Limited Commitment ◽  
Optimal Insurance ◽  
Insurance Contracts
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