The Development of Alternative Strategies for the Issuers of Unit-Linked Life Insurance Contracts with Investment Guarantees / Rozwój alternatywnych strategii dla emitentów polis ubezpieczeniowych typu unit-linked z gwarancją inwestycyji
Journal Title: Studia Prawno-Ekonomiczne - Year 2016, Vol 0, Issue
Abstract
One of the consequences of the financial markets’ development, and implicitly of insurance markets, has been the emergence of unit-linked life insurance products in the last two decades. Unit-linked contracts are life insurance policies with investment components. Due to the financial instability caused by the Global Crisis and the amplification of market competitiveness, insurers from international markets have started to incorporate guarantees in unit-linked products. So a unit-linked life insurance policy with an asset value guarantee is an insurance policy whose benefit payable on death or at maturity consists of the greater of some guaranteed amount and the value of the units from the investment funds. One of the most challenging issues concerns the pricing of minimum death benefit and maturity benefit guarantees and the establishment of proper reserves for these guarantees. Although the Romanian legislation authorizes the Romanian insurers to offer unitlinked contracts without investment guarantees, this research provides a proposal of a theoretical and empirical basis for pricing and assessing unit-linked insurance contracts with incorporated investment guarantees. Therefore the model provides a theoretical framework for valuing these investment guarantees. Our findings reveal that the investment policy is optimal in that it provides the Romanian insurance company with a hedging strategy against the investment risk connected with these benefit guarantees.
Authors and Affiliations
Cristina Ciumas, Diana-Maria Chis, Emilia-Anuta Corovei
Keywords
Related Articles
- EP ID EP195268
- DOI -
- Views 95
- Downloads 0
The Tendencies and Issues of Transposing EU Law to the General Part of Lithuanian Criminal Code / Tendencje i problemy związane z wdrożeniem prawa unijnego do Części ogólnej litewskiego Kodeksu Karnego
This article deals with the theoretical and practical issues of transposing European Union law to the General Part of the Lithuanian Criminal Code, as well as certain aspects of the European Union criminal law that make...
Rynek finansowy jako miejsce przenikania się norm prawa prywatnego i prawa publicznego
The present article constitutes an analyze of the law of financial market, as a specific branch of law in which the norms of private law co-exist with the norms of public law. The author is describing the provisions of t...
Uznanie międzynarodowe polski a ustanowienie przez nią stosunków dyplomatycznych w 1919 r.
: Odrodzona w 1918 r. Polska była w konflikcie politycznym i zbrojnym ze wszystkimi sąsiadami. Jej granice nie były zatwierdzone przez zwycięską ententę. Skierowane z Warszawy w listopadzie 1919 r. prośby o uznanie międz...
Teoria legalistyczna a prawo własności intelektualnej / Intellectual Property According to the Entitlement Theory
Propertarianism, the most prominent of contemporary libertarian factions, holds that in order to establish a harmonious society it is necessary to introduce and delineate the right of private property. Despite the strong...
Janusz Sondel, Przywileje fundacyjne Uniwersytetu Jagiellońskiego oraz Przywilej nadania szlachectwa jego profesorom (z historyczno-prawnym komentarzem) - recenzja
-