| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5077461 | Insurance: Mathematics and Economics | 2008 | 8 Pages |
Abstract
We analyze the effect of enhanced annuities on an insurer engaging in individual underwriting. We use a frailty model for heterogeneity of the insured population and model individual underwriting by a random variable that positively correlates with the corresponding frailty factor. For a given annuity portfolio, we analyze the effect of the quality of the underwriting on the insurer's profit/loss situation and the impact of adverse selection effects.
Related Topics
Physical Sciences and Engineering
Mathematics
Statistics and Probability
Authors
Gudrun Hoermann, Jochen RuÃ,