Author:
Moretti Nikolaj,Bartels Johannes
Abstract
AbstractDynamic hybrid products emerged in 2007 and are now well established in the German life insurance market. In this article, we study interaction effects between dynamic hybrid products and traditional deferred annuity contracts, that are sold by the same insurance company. The key question we investigate is whether the presence of dynamic hybrid products has a negative effect on the payout of traditional insurance products. We do so by using data drawn from a Monte Carlo simulation that is based on a model presented in this article. These data reveal that dynamic hybrid products reduce the payment to policyholders of traditional deferred annuities via the channel of surplus participation.
Funder
Ruprecht-Karls-Universität Heidelberg
Publisher
Springer Science and Business Media LLC
Reference12 articles.
1. Bettels, C., Grosner, T., Leitschkis, M.: Vorsorge: Dynamische Hybride: Chancen und Risiken für Lebensversicherer. Versicherungswirtschaft 66(20), 1451–1457 (2011)
2. Bohnert, A.: The market of dynamic hybrid products in Germany: concept, risk-return profiles, and market overview. Zeitschrift für die gesamte Versicherungswissenschaft 102(5), 555–575 (2013)
3. Bohnert, A., Gatzert, N.: Fair valuation and risk assessment of dynamic hybrid products in life insurance: a portfolio consideration. Geneva Pap. Risk Insur. Issues Pract. 39(1), 148–172 (2014)
4. Bohnert, A., Born, P., Gatzert, N.: Dynamic hybrid products in life insurance: assessing the policyholders’ viewpoint. Insur. Math. Econ. 59, 87–99 (2014)
5. Führer, C., Grimmer, A.: Einführung in die Lebensversicherungsmathematik. VVW GmbH, Karlsruhe (2010)