Accounting-based asset return smoothing in participating life annuities: implications for annuitants, insurers, and policymakers
- This chapter outlines the conditions under which accounting-based smoothing can be beneficial for policyholders who hold with-profit or participating payout life annuities (PLAs). We use a realistically-calibrated model of PLAs to explore how alternative accounting techniques influence policyholder welfare as well as insurer profitability and stability. We find that accounting smoothing of participating life annuities is favorable to consumers and insurers, as it mitigates the impact of short-term volatility and enhances the utility of these long-term annuity contracts.
| Author: | Raimond MaurerORCiDGND, Olivia S. MitchellORCiDGND, Ralph RogallaGND, Ivonne SiegelinORCiD |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-382887 |
| URL: | http://ssrn.com/abstract=2664095 |
| DOI: | https://doi.org/10.2139/ssrn.2664095 |
| Parent Title (English): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 518 |
| Series (Serial Number): | CFS working paper series (518) |
| Publisher: | Center for Financial Studies |
| Place of publication: | Frankfurt, M. |
| Document Type: | Working Paper |
| Language: | English |
| Date of Publication (online): | 2015/09/23 |
| Date of first Publication: | 2015/09/23 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2015/10/08 |
| Issue: | August 2015 |
| Page Number: | 23 |
| HeBIS-PPN: | 366777874 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| 3 Sozialwissenschaften / 36 Soziale Probleme, Sozialdienste / 360 Soziale Probleme und Sozialdienste; Verbände | |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Deutsches Urheberrecht |
