Search results for "Surrender"
showing 8 items of 8 documents
Pricing the Option to Surrender in Incomplete Markets
2010
New international accounting standards require insurers to reflect the value of embedded options and guarantees in their products. Pricing techniques based on the Black and Scholes paradigm are often used; however, the hypotheses underneath this model are rarely met. We propose a framework that encompasses the most known sources of incompleteness. We show that the surrender option, joined with a wide range of claims embedded in insurance contracts, can be priced through our tool, and deliver hedging portfolios to mitigate the risk arising from their positions. We provide extensive empirical analysis to highlight the effect of incompleteness on the fair value of the option.
POGLĄDY NA NAUKĘ JĘZYKA OBCEGO U OSÓB Z WYSOKĄ I NISKĄ GOTOWOŚCIĄ KOMUNIKACYJNĄ W JĘZYKU ANGIELSKIM
2019
Reflection is understood as an activity which enables the reproduction of past experiences, reflection and meditation about them and their evaluation. One of the most significant features shaping learner reflection may be willingness to communicate in a foreign language – one’s volitional readiness to enter a communicative event in this language. In spite of a wealth of research conducted in this area, it is still unclear why some students are willing to start communication in a foreign language, while others are adamant to avoid it. For the purpose of this paper a qualitative-quantitative study was performed, focusing on four students with very low levels of willingness to communicate in E…
Asset and Liability Management for Insurance Products with Minimum Guarantees: The UK Case
2006
Abstract Modern insurance products are becoming increasingly complex, offering various guarantees, surrender options and bonus provisions. A case in point are the with-profits insurance policies offered by UK insurers. While these policies have been offered in some form for centuries, in recent years their structure and management have become substantially more involved. The products are particularly complicated due to the wide discretion they afford insurers in determining the bonuses policyholders receive. In this paper, we study the problem of an insurance firm attempting to structure the portfolio underlying its with-profits fund. The resulting optimization problem, a non-linear program…
How Return Affects the Decision to Surrender a Savings Insurance Policy: Detailed Observations on the Reverse Disposition Effect
2020
The disposition effect has been widely studied in academia, while the reverse disposition effect observed in mutual funds has gained relatively little attention. This study examines the reverse disposition effect in detail by using policy-level data from a Finnish life insurer with a considerable sample size. The results show that the Finnish savings policies with a positive return have a surrender rate that is over 30 percent lower than that of policies with a negative return. Tax incentives and expected future returns do not seem to cause this reverse disposition effect directly. Salient information strengthens the reverse disposition effect, and higher policyholder age and surrender fees…
The prometeia model for managing insurance policies with guarantees
2008
Publisher Summary This chapter discusses the development of a scenario-based optimization model for asset and liability management for the participating policies with guarantees and bonus provisions offered by Italian insurers. The changing landscape of the financial services in Italy sets the backdrop for the development of this system which was the result of a multi-year collaborative effort between academic researchers, the research staff at Prometeia in Bologna, and end-users from diverse Italian insurers. It also presents and discusses the model and its key feature, and introduces several extensions. The resulting system allows the analysis of the tradeoffs facing an insurance firm in …
Thirty years of ASEAN: Achievements and challenges
1998
Abstract This article first takes stock of the experiences, successes and shortcomings of Southeast Asian regionalism. During its thirty years, ASEAN has demonstrated the capability to react to international developments and to handle interstate relations on a constructive and cooperative basis. It is perhaps the most valuable achievement of ASEAN that the Association taking advantage of its well‐established dialogue mechanisms has successfully managed to keep residual conflicts between the members (especially territorial dispute) from developing into full‐blown crises. The article then deals with the question to what degree past experiences, performances, patterns of organization and past …
The relationship between institutions and value creation in software development models
2018
Purpose The purpose of this paper is to analyse the possibility for firms to consider institutional settings to systematically direct dispersed individual efforts of discovery and invention towards objects (products or processes) of their interest in order to enhance their value creation capacity. Design/methodology/approach The authors conduct a comparative analysis of the different institutional settings within which software products are invented and produced – closed producer-centred model, open user-centred model, and hybrid interactive producer-user model. Findings The authors draw indications regarding the possibility to design institutional settings for value creation and the poten…
Brexit and war rhetoric, an electoral stategy?
2021
International audience; The English language is replete with bellicose expressions and references to different battles and wars involving British armed forces, in particular World War Two. This point was highlighted recently by the current occupant of 10 Downing Street, Boris Johnson, who remarked that "military metaphors are old parliamentary standard practice." 1 Many such terms have entered the everyday lexicon of most Eurosceptics and Brexiteers alike. They had already become common currency in anti-European rhetoric since the 1990s, but have reached a greater level of intensity in the last four years since the Brexit referendum, when these groups or individuals discuss or denounce the …