Why do life insurance policyholders lapse? The roles of income, health, and bequest motive shocks
نویسندگان
چکیده
منابع مشابه
Why Do Life Insurance Policyholders Lapse? The Roles of Income, Health and Bequest Motive Shocks∗
We present and empirically implement a dynamic discrete choice model of life insurance decisions to assess the importance of various factors in explaining life insurance lapsation. In order to explain some key features in the data, our model incorporates multiple dimensions of serially correlated unobservable state variables which we deal with using posterior distributions of the unobservables ...
متن کاملNber Working Paper Series Why Do Life Insurance Policyholders Lapse? the Roles of Income, Health and Bequest Motive Shocks
Previous research has shown that the reasons for lapsation have important implications regarding the effects of the emerging life settlement market on consumer welfare. We present and empirically implement a dynamic discrete choice model of life insurance decisions to assess the importance of various factors in explaining life insurance lapsations. In order to explain some key features in the d...
متن کاملWhy Do Life Insurance Policyholders Lapse? Liquidity Shock vs. Loss of Bequest Motive
Theoretical studies on the e¤ect of life settlement market on consumer welfare show that it crucially depend on the reasons for the lapsation of life insurance policies: if lapsation is purely due to the loss of bequest motives by the policyholders, then life settlement is shown to be detrimental to consumer welfare in equilibrium; on the other hand, if lapsation results from liquidity shocks, ...
متن کاملHanming Fang and Edward Kung “ Why Do Life Insurance Policyholders Lapse ?
Previous research has shown that the reasons for lapsation have important implications regarding the effects of the emerging life settlement market on consumer welfare. We present and empirically implement a dynamic discrete choice model of life insurance decisions to assess the importance of various factors in explaining life insurance lapsations. In order to explain some key features in the d...
متن کامل“the effect of risk aversion on the demand for life insurance: the case of iranian life insurance market”
abstract: about 60% of total premium of insurance industry is pertained?to life policies in the world; while the life insurance total premium in iran is less than 6% of total premium in insurance industry in 2008 (sigma, no 3/2009). among the reasons that discourage the life insurance industry is the problem of adverse selection. adverse selection theory describes a situation where the inf...
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ژورنال
عنوان ژورنال: Journal of Risk and Insurance
سال: 2020
ISSN: 0022-4367,1539-6975
DOI: 10.1111/jori.12332