Author(s): David Blake and John Pickles, Cass Business School
Current life expectancy depends very much on demographic factors, particularly lifestyle, and varies from scheme to scheme, i.e. it is scheme specific. It is therefore very important that companies understand where their scheme sits in the population of pension schemes as far as life expectancy is concerned.
Updated: 10/09/2010 | Comments: 0 | Rating: Not yet rated | Views: 349
Author(s): Les Mayhew, Cass Business School
This paper considers the market potential for privately financed long term care products in the UK. It finds that since the present market is undeveloped there is scope to increase the range of products available to suit people with different means and circumstances.
Updated: 07/09/2010 | Comments: 0 | Rating: Not yet rated | Views: 303
Claims reserves are held by insurance companies so that they have sufficient funds to pay claims when they are submitted by policyholders. In general insurance, insurance policies usually last for a year; the policyholder pays an upfront premium and then expects any claims to be met – no matter when they are made. The problem for insurers is that there is often a delay before the claims are arrive, and then a further delay before they are paid.
Updated: 10/09/2010 | Comments: 0 | Rating: Not yet rated | Views: 587
Author(s): Russell Gerrard, Andreas Tsanakas, Cass Business School
Financial institutions such as insurance companies or banks are regulated according to a Value-at-Risk principle. This means that they have to hold enough capital, such that their probability of becoming insolvent over a fixed time horizon (e.g. 1 year) is very low (e.g. at most 0.5%). Calculation of the required capital according to this principle stumbles on the quite fundamental difficulty of estimating the probability of very extreme scenarios based on limited data sets.
Updated: 07/09/2010 | Comments: 0 | Rating: Not yet rated | Views: 115
Author(s): Steven Haberman, Cass Business School
The sustained reduction in mortality rates has been attracting the interest of researchers in the last decade because of its potential impact on population size and structure, social security systems, and (from an actuarial perspective) the life insurance and the pensions industry worldwide. Governments need to be able to plan on the basis of the likely size and composition of the future population in order to make judgements about how much to spend on schools, hospitals, pensions and related social security benefits; hence, they need to be able to understand these trends and their implications.
Updated: 09/09/2010 | Comments: 0 | Rating: Not yet rated | Views: 190
