Koijen, Ralph S. J.; Yogo, Motohiro - In: American Economic Review 105 (2015) 1, pp. 445-75
During the financial crisis, life insurers sold long-term policies at deep discounts relative to actuarial value. The average markup was as low as -19 percent for annuities and -57 percent for life insurance. This extraordinary pricing behavior was due to financial and product market frictions,...