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Persistent link: https://www.econbiz.de/10001139914
This paper uses laboratory experiments to provide a systematic analysis of how different presentation formats affect individuals' investment decisions. The results indicate that the type of presentation as well as personal characteristics influence both, the consistency of decisions and the...
Persistent link: https://www.econbiz.de/10010362891
In light of the upcoming Solvency II Pillar 3 disclosure regulation for the insurance industry, this paper explores the risk disclosure practices in annual reports of European primary insurers in the Dow Jones Stoxx 600 Insurance Index between 2005 - 2009. Based on a self-constructed risk...
Persistent link: https://www.econbiz.de/10009565080
In light of the upcoming Solvency II Pillar 3 disclosure regulation for the insurance industry, this paper explores the risk disclosure practices in annual reports of European primary insurers in the Dow Jones Stoxx 600 Insurance Index between 2005-2009. Based on a self-constructed risk...
Persistent link: https://www.econbiz.de/10012940477
Life insurers massively sell savings contracts with surrender options which allow policyholders to withdraw a guaranteed amount before maturity. These options move toward the money when interest rates rise. Using data on German life insurers, we estimate that a 1 percentage point increase in...
Persistent link: https://www.econbiz.de/10012671837
Life insurers sell savings contracts with surrender options, allowing policyholders to prematurely withdraw guaranteed surrender values. Surrender options move toward the money when interest rates rise. Hence, higher interest rates raise surrender rates, as we document for the German life...
Persistent link: https://www.econbiz.de/10013175693
Historical evidence like the global financial crisis from 2007-09 highlights that sector concentration risk can play an important role for the solvency of insurers. However, current microprudential frameworks like the US RBC framework and Solvency II consider only name concentration risk...
Persistent link: https://www.econbiz.de/10012647831
Persistent link: https://www.econbiz.de/10009316257
This paper investigates the effects of a rise in interest rate and lapse risk of endowment life insurance policies on the liquidity and solvency of life insurers. We model the book and market value balance sheet of an average German life insurer, subject to both GAAP and Solvency II regulation,...
Persistent link: https://www.econbiz.de/10011696403
Persistent link: https://www.econbiz.de/10012055575