method. We show that the rationality of the policyholders has a significant effect on average contract value and hence on the … fair contract design. We also present the separating boundary between purely exogenous surrender and endogenous surrender …

the insurance company's and the policyholders' perspectives and characterize the contract values by deriving the … secondary market characteristics such as accessibility and competition on the contract values. The pricing PDEs are solved … existence of a fair contract in this context and study the effect of the secondary market on fair contract design. …

option embedded into the savings plan is in fact a power option, and thus the specification of the ``fair'' contract … explicitly taking into account ``model risk''. In this context, we show how to determine the contract parameters conservatively …

starting point is an analogy between contract rules and a financial exotic option. In particular, a cash or nothing option … exercise prices, main variable to estimate the contract value. Prime market values used on this work are more than double than … the theoretical value found on the exotic option while comparing them to identical contract conditions such as insured …

individual who buys a life insurance contract early in life is often uncertain about the future financial needs of his or her … bequest needs; but since bequest motives are typically unverifiable, a contract directly insuring these needs is not feasible …

reverse engineering is a rewarding direction for future research. It circumvents the limitations of finance theory, among …