This paper examines the impact of three surplus appropriation schemes often inherent in participating life insurance contracts on the insurer's shortfall risk and the net present value from an insured's viewpoint. 1) In case of the bonus system, surplus is used to increase the guaranteed death...

Dynamic hybrid products are innovative life insurance products particularly offered in the German market. These products are characterized by a periodical rebalancing process between the policy reserves (i.e. the premium reserve stock), a guarantee fund and an equity fund. The policy reserve...

Dynamic hybrid life insurance products are intended to meet new consumer needs regarding stability in terms of guarantees as well as sufficient upside potential. In contrast to traditional participating or classical unit-linked life insurance products, the guarantee offered to the policyholders...