Even though insurers predominantly invest in bonds, credit risk associated with government and corporate bonds has long not been a focus in their risk management. After the crisis of several European countries, however, credit risk has recently been paid greater attention. Nevertheless, the...

In participating life insurance, management decisions regarding the asset composition can substantially impact the value of a policy from the policyholders' perspective as well as the insurer's risk situation. Due to the long-term guarantees often embedded in these contracts, life insurers...