Analysis of the Variable Life Insurance Based on Log-Normal Distribution

INSURANCE ISSUES IN LIVING KIDNEY DONATION We have undertaken a study to ascertain the perspective of U.K. insurance companies to provision of insurance to living kidney donors. WHICH (consumer guide) and customer directories were used to identify the major life and health insurance providers in the United Kingdom, who were then invited to complete specific questionnaires. The results were as follows: 14 life insurance companies, insuring approximately 6.5 million customers (79% of U.K. life insurance market), replied. When questioned regarding their policy if an existing customer should die during kidney donation, 13 of 14 stated that they would pay the agreed life insurance sum. One company did not provide an answer, as they had no experience of the situation and are currently deciding their position for future reference. No companies required to be informed by a customer of their intention to donate. Furthermore, all would accept new customers after previous kidney donation and would not charge an increased premium but indicated that time considerations since donation were a factor in assessing such customers (Table 1). Table 1: Time since living kidney donation for new customers considered relevant by life and health insurers in the United KingdomRegarding health insurance provision, seven major health insurance companies replied; however, one did not complete the questionnaire because they do not market new business. Of the remaining six companies, half cover existing customers for kidney donation. Should an existing customer require a transplant, one company would pay recipient medical expenses and would also pay donor costs if the recipient and donor were both policy holders. All companies accept new customers after previous kidney donation, although two of six stipulate that they exclude any problems arising from donation. Two of six charge an increased rate and four of six do not. Time since donation is considered to be relevant for new customers, as shown in Table 1. Insurance companies providing life insurance to almost 80% of the life insurance policy holders in the United Kingdom would honor the terms of their agreement should a customer die as a consequence of live kidney donation. Premiums are not raised; therefore, kidney donation has no long-term financial implications regarding life insurance. When considering new customers applying for insurance, there were significant inconsistencies among both life and health insurers in the amount of time postdonation that respondents considered relevant. Deaths associated with live kidney donation are rare but occur predominantly in the perioperative period, as do the great majority of complications (1,2), and so these time considerations could be considered to be without scientific foundation. It has been postulated that the increased life expectancy in donor populations may be attributed to exclusion of concomitant illness by the rigorous assessment (3–5). Considering this, the reluctance of certain health insurers to provide medical expenses for donors or sickness benefit is disappointing. Equally, it could be argued that life insurance premiums should actually be reduced postdonation. Kidney donation may have financial implications for health insurance; however, the long-term effects of this are minimized because of the current structure of the National Health Service in the United Kingdom. The inconsistencies in many aspects of insurance provision to live kidney donors highlight the necessity to share information and strive for evidence-based practice from insurance providers. Sarah Clarke Jennifer A. Lumsdaine Stephen J. Wigmore Murat Akyol John L. R. Forsythe

This thesis is based on the author's own in-house experienced the situation, to analyze the life insurance companies in the Bancassurance business strategy, how in the most effective way to operate and create a win-win? Banks and life insurance companies appears to be a different financial institution, but its business has been collaborating on many days, the life insurance company itself has a number of operating channels, such as: sales channels, Insurance Brokers Insurance Agency pathway Bancassurance .. etc. , life insurance companies are scattered its operating risks. Bancassurance which is nearly six years digging new type of operation, and in 2012 accounted for 61% of all revenue channels, all insurance companies are in this fierce competition, the thesis discussed Transglobe Bank Insurance path based on past experience, and thus the business strategy of regional IA development in the banking channel, during which face many problems, but have all the solutions, and finally explore win-win.

Life insurance has become one of the necessities of human life. It offers financial security to the policyholder and/or his/her dependents in the event of his premature death or accidental disability. As death of the bread earner creates severe financial problem before the dependents and as the permanent physical or mental disability also create even more severe financial problems for them adequate financial provision in the form of different life policies is essential. One life policy may not be suitable for all individuals therefore out of different life insurance policies an individual takes out a suitable combination of policies depending up on his financial needs. Number of dependents in the family is one of the important factors in buying decision about the number and types of life policies. The present research has made an attempt to assess the relationship between types of policy holdings and dependents. The research revealed that whole life and endowment policies are more favoured by the samples with zero dependents, with one dependent, with two dependents and with four dependents.

For many years analysts have been interested in measuring the cost to consumers of life insurance and in comparing insurance prices across companies.(1) This article focuses on price measurement for the life insurance industry from a different point of view - the price of insurance from the standpoint of the insurance firm. In recent years there have been important advances in the application of index number theory to the financial firm. Barnett (1980) showed how meaningful economic index numbers of monetary aggregates can be constructed using the user cost of each monetary assets as the price of the asset. Hancock (1985) used this user cost concept in developing and testing a theory of the financial firm. Fixler (1988) used modern index number theory and the theory of the financial firm to derive output price indexes for commercial banks. Fixler and Zieschang (1991) used these ideas to measure financial service output for the national income accounts. Weiss (1986) used index number theory to measure total factor productivity for life insurance firms. This article shows how index number theory based on the economic theory of the financial firm can be used to construct meaningful index numbers of output prices for the life insurance industry. It then constructs an index of output prices for the U.S. life insurance industry for 1976 through 1989. Finally, the price index is used to deflate the nominal value of insurance output to get an index of real life insurance output. The Measurement Issue The U.S. life insurance industry is large and diverse, with over 2,000 companies providing a wide variety of services. The industry provides traditional whole life insurance, which includes a savings component through the build up of cash value, and term insurance which does not involve saving. In recent years new kinds of policies, such as universal life and variable life, have grown in importance. The industry also provides loans to policyowners whose policies have cash values. Life insurers also sell annuities, health insurance and financial management services. The remainder of the article deals with life insurance products only. This diversity of activities and mingling of insurance and savings functions calls for a careful treatment of the important issue of constructing output price indexes for the industry. The output of the life insurance industry is the set of real financial services provided by the policies it sells. Smith (1982) argues that a life insurance policy can be viewed as an options package, providing the policyowner with options such as policy loans and guaranteed renewal at fixed premium rates in addition to death benefits. The output of the industry is the entire set of these real financial services or contingent claims on real goods and services. The illustrative application below is based on the assumption that these real financial services are proportional to the level of real insurance in force measured in 1976 dollars. The application constructs an index of the nominal price of this real output from the standpoint of the life insurer. Index Numbers of Life Insurance Output Prices Indexes of Output Prices The modern theory of output price indexes conceptualizes output price differences between the reference and comparison periods as the ratio of the firm's revenue function with the comparison period's output prices to the revenue function with the reference period's output prices.[2] The firm's revenue function is R(p;y)=[Max.sub.x] [p'x/(x,y)[epsilon]T] where p is the Nx1 vector of prices of outputs (to be defined below), x is the Nx1 vector of quantities of outputs, y is the Mx1 vector of inputs, and T is the production possibility or feasible set. In defining the revenue function the levels of inputs are held constant. This revenue maximization process yields the same optimal output results as profit maximization because input levels are fixed. …

Following the release of life insurance market in Taiwan, new companies and new products consistently made their appearances; however, life insurance industry confronted severe competition and challenges. As a result, the competition of traditional cost can no longer ensure the competitive advantage. In addition to satisfying the demand of diversified life insurance product, increasing the degree of customer satisfaction is the primary strategic direction in life insurance industry. Thus, this study aims at building and examining the conceptual structure of customer satisfaction in the insurance industry, including the antecedents, such as cognitive construct, affective construct and disconfirmation, and at building upon the satisfaction of postpurchase behavior, including loyalty and complaining behavior. The findings reveal that, affection and disconfirmation serves the best capability of explanation in customer satisfaction. Furthermore, the satisfaction positively correlates with the positive affection and disconfirmation, whereas negatively correlates with the negative affection, and in addition, positively correlates with repurchase intention and word-of-mouth; however, it has no correlation with the complaining behavior. Finally, the results of the empirical study reveal that positive affection tends to directly influence the word-of-mouth and complaining behavior, thus, the best strategy in the life insurance industry should be based on forming the invisibly specific assets with the customers, that is the positive affection, as to construct higher transformational barriers.

本文是以戰後臺灣壽險市場的發展為研究主題。臺灣壽險市場已是國際社會所稱保險成熟市場，但臺灣的死亡保障缺口卻未隨國人保費支出的增加而減少，反倒擴大。為了瞭解究竟是什麼因素造成臺灣壽險市場的獨特性，本文主張必須從影響市場結構之制度環境如何形成著手，並強調完整的市場研究需探討有關市場形成的兩個息息相關的制度化過程：（1）國家如何在本身所處制度環境中制訂正式規則？（2）市場行動者如何在國家所規範的正式規則中形成市場結構？本文預設國家與市場是兩個相互依賴的策略行動場域。這個預設具有兩個意涵。其一，本文的「國家自主性」不是國家不受社會羣體影響的自主性，而是鑲嵌於具體的社會關係中。但國家有可能因為組織形態，而使某個部門的政策意見相較於其他部門的政策意見更有機會被採納，因此，當政體結構與國際情勢有所變化，不同政治行動者在決策過程中的角色與權力也會有所變化。其二，在國家場域與市場場域（或稱非國家場域）中的行動者有所謂「在位者」與「挑戰者」之分，在位者或挑戰者為了促使其他行動者與他合作，會嘗試使其政策觀點成為政策選項之一，進而主導市場發展的走向。然而，儘管行動者會對「外在於」國家場域與非國家場域的歷史事件進行策略性詮釋與利用，使某個歷史事件成為影響政策制訂與市場發展的重要因素，行動者在推動某個政策時卻是基於自身短期的利益考量而非政策的長遠影響，以致政策發展的長遠結果往往是短期政治考量的副產品，或者即使政策制訂者確實是基於政策的長遠影響推動某個政策，卻也會因為有太多行動者參與其中、有太多政策制訂工作要持續進行，以致難以監督政策的實際成效而產出意想不到的政策結果（即市場發展）。 基於上述預設，本文以「威權主義」、「分配主義」、「重商主義」三個不同類型的發展型國家階段來表達國家自主性在不同時期的表現。同時，由於與壽險市場相關的政策議題非常多，限於篇幅，本文選擇以「保險資金運用」、「保險契約關係」、「保險通路管理」這三個政策議題，探討它們在這三個不同類型的發展型國家階段如何形成與發展，又如何經過市場行動者的運用，而為下一階段的政策變遷埋下伏筆。最後，本文亦透過考察每個階段的在位者與挑戰者，來瞭解行動者根據政策所發展出來的市場策略如何影響市場文化的形成。 研究結果發現，就經驗現象而言，臺灣壽險市場的獨特性不只與消費者的觀點及社會經濟的發展有關，亦與國家政策有關。更精準的說法是，社會經濟的發展會影響國家監理壽險市場的相關政策，消費者的觀點則是市場發展的結果。以本文一開始所指出的死亡保障缺口而論，死亡保障缺口隨著國民所得的提高反而擴大的原因多少與國家未以建立國人的保險觀念為政策選項有關，因壽險公司所採取與「保險資金運用」、「保險契約關係」、「保險通路管理」這三個議題相關的策略行動據此就以能夠達到快速累積資本的目的為優先考量，消費者觀點任由壽險公司形塑。就理論意涵而言，臺灣壽險市場的發展經驗清楚說明，國家與市場兩者密切互動。同時，「國家自主性」不能只從國家「獨斷性權力」與「基礎構造權力」的構成來判斷。更重要的是國家的「政策能力」。而國家的政策能力是建立在公民社會的健全之上。亦即，只要國家是個民主政體，公民社會始終對公共議題保持高度關注並採取相應的政治行動，國家與特定資本家或社會羣體之間的特殊關係不會產生只有利於特定資本家或社會羣體的政策發展，只要政策不是圖利特定資本家或社會羣體，市場發展的結果自然朝向有利於社會整體的方向進行。

We often take published mortality rates for granted. This is a dangerous practice because the data sources may gather the information in ways that lead to potentially misleading results. This is particularly true when market selection enters the process because individuals with higher risk of death are more likely to apply for insurance and insurance companies underwrite the risks to attempt to reverse the bias caused by self-selection. Moreover, if the data is to be used for forecasting future mortality we must pay due attention to the basis on which the mortality is calculated; period mortalities and cohort mortalities can be projected, but the applicability of the projections to a particular application must be considered with some care. The methods used in forecasting the mortality of policyholders and annuitants is a major determinant of the risk that insurers bear and of the profit they may be expected to receive; it is also a major determinant of the solvency of social insurance institutions. In particular, methods that do not take into account the impact of market selection on the correlation between mortality of the accepted policyholders and the amount of insurance agreed upon are likely to cause serious biases in the estimation of the required premiums.

Stepping into the 21st century, Information Technology has reached a new era, and its market competition has become hotter than ever due to the request for higher standards. To all corporations, their means of survival is profits. The source for profits are customers; may it be business clients or individual consumers. Domestic insurance industry’s tactic on customer relationship has developed into using IT as a tool for Customer Relationship Management. 21st century is (e世代), naturally, the information technology is advancing into a powerful tool, but the merging of the (CRM) and (IT) has to first unify the company’s business strategies for it to be successful. New Information Technologies such as the Web、Internet、EC、Data Warehouse、Data Mining and IA has matured. They rely on strong interaction with the consumers to gain an edgy on the competition with other forms of communication. The goal of the company is to use the advantages that the IT provides so that it will stand out from the crowds. The aim of this research is to understanding the present commercial environment, for the enterprise to monitor the customer's demands regarding to the service, and the personnel's ability to provide the customers with necessary informations. it also attempts to create a modle to evaluate the quality of the system. It lets the company to understand why CRM went wronk, and how satisfied the customers are regarding to the system. The research concludes: -The system quality can affect the service personnels on the system useage and the system degree of satisfaction. -The information quality can affect the service personnels on the system useage and system degree of satisfaction -The service personnel's personal background factor?can also affect the service personnels on the system use and the system degree of satisfaction. -The degree of system useage can affect the service personnels on the degree of system satisfaction these findings may be used to supply other life insurance companies in the renewal, the development or reference to introduction of information system, they may also develop more appropriate insurance company information system with the information cooperation design

이 글은 보험사의 감정노동 관리전략과 보험설계사들의 감정노동 수행전략에 대한 경험적 연구이다. 보험설계사는 독립사업자 신분의 특수고용직 종사자로서 관리자들로부터 직접적으로 작업지시를 받지 않고, 노동행위가 이루어지는 공간은 유동적이다. 이러한 조건에서 보험사는 관리자의 통제력이 미치지 못하는 상황에서도 설계사들이 조직의 규율에 따라 감정노동을 수행하도록 유인하는 관리전략을 활용한다. 보험사는 회사의 관리 방식을 따르는 것이 설계사들의 직업적 성취와 직결됨을 강조하면서 설계사들이 자발적으로 감정표현규칙을 준수하여 직무를 수행하도록 동기를 부여하고자 한다. 그것을 위해 설계사들의 외양과 자아 정체성을 조직에서 기대하는 방향으로 변모시켜 그들의 사적 자아를 조직이 제시하는 직업적 자아에 일치시키고자 한다. 그러나 실제 보험설계사들이 수행하는 감정노동은 조직의 요구를 전면적으로 수용하기 보다는 개별 설계사들의 사적 자아와 조직의 요구가 협상된 결과로 수행된다. 이를 통해 설계사들은 감정부조화나 불일치를 최소화 하고 자아를 유지하려 한다. 그러나 설계사들이 자신의 진정성과 정체성을 지키려는 의지는 그들의 내면에 더 깊이 개입하려는 조직에 의해 지속적으로 손상된다. 이 연구는 보험사의 감정노동 관리 전략을 감정표현규칙의 형식과 내용, 관리통제의 방식 및 성격을 중심으로 논의하고, 보험설계사들이 실제 노동과정에서 조직의 요구와 관리 전략을 어떻게 인식하고, 감정노동을 수행하는지를 제시하였다.

In classical life insurance mathematics the obligations of the insurance company towards the policy holders were calculated on artificial conservative assumptions on mortality and interest rates. However, this approach is being superseded by developments in international accounting and solvency standards coupled with other advances enabling a market-based valuation of risk, i.e., its price if traded in a free market. The book describes these approaches, and is the first to explain them in conjunction with more traditional methods. The various chapters address specific aspects of market-based valuation. The exposition integrates methods and results from financial and insurance mathematics, and is based on the entries in a life insurance company's market accounting scheme. The book will be of great interest and use to students and practitioners who need an introduction to this area, and who seek a practical yet sound guide to life insurance accounting and product development.

This paper focuses on asset allocation decisions of life insurance companies in emerging markets. Mature market insurers allocate only a small fraction of their assets to emerging markets because of regulatory constraints, rating pressures, and currency risk. However, global insurers invest directly in emerging markets by setting up subsidiaries rather than through portfolio investment, and this trend is increasing. Local insurers largely remain captive investors of local instruments and provide stability to the domestic securities market. The regulatory regime and the liquidity and depth of local markets play an important role in asset allocation decisions of insurers. Insurance companies are increasingly adopting asset liability management and risk control measures. However, insufficiently developed local markets and regulatory interventions on the liabilities side often limit optimal asset allocation.

Statistical and econometric analysis of the treatment of HIV/AIDS

We saw in Chapter 1 that a basic feature of human life is that the consumption path is much smoother than the earning path; people consume even when they do not, earn. Another, equally important, characteristic is the so-called longevity risk that is, the date of the death of any person is known in advance neither to him nor to others. Indeed, there are people who die just before retiring, and there are others who live for a hundred years. In the former case, lifetime consumption may be much lower than lifetime earnings; in the latter case, lifetime consumption may be much higher than lifetime earnings. Furthermore, this uncertainty makes self- or family financing much more difficult than it would be in a deterministic world (Fischer, 1973 and Walliser, 2000, 2001). Here we shall examine the ideal system of life insurance with life annuity and then turn to real-life complications.

Term life insurance is a type of life insurance policy that provides coverage for a certain period of time. If the insured dies during the time period specified in the policy and the policy is active, a death benefit will be paid. One of the basic problem in insurance company is that insurers cannot classify high level risk individual from low level risk individual and cannot offer different premium to each individual. Therefore, the aim of this study was to show how insurers can decrease risk classification and increase demand of low level individual for insurance. We used Mahdavi’s model and it was expanded with contract duration, interest rate and individual’s age parameters. We found that if contract duration or interest rate increases, demand for insurance and risk classification also increase. However, if age of the individual or cost of claim increases, demand for insurance decreases. In additional, when cost of claim goes up, risk classification declines

To investigate workers' willingness to participate and wiliness to pay for a hypothetical industrial injury insurance scheme, to analyze the influential factors, and to provide information for policy making of the government. Multistage cluster sampling was used to select subjects: In the first stage, 9 small, medium, orlarge enterprises were selected fromthree cities (counties) in Zhejiang province, China, according to the level of economic development, transportation convenience, and cooperation of government agencies; in the second stage, several workshops were randomly selected from each of the 9 enterprises. Face-to-face interviews among all workers in the workshops were conducted by trained interviewers using a pre-designed questionnaire. It was found that 73.87% (2095) of all workers were willing to participate in the hypothetical work injury insurance scheme and to pay 2.21% of monthly wage (51.77 yuan) on average, and more than half of the workers were willing to pay less than 1%of monthly wage (35 yuan). Of the 741 workers who were not willing to participate, 327 thought that the premium should be borne by the state or enterprises, instead of individuals, and others were not willing to participate because of low income, unstable job, or poor understanding of the hypothetical industrial injury insurance scheme. Logistic regression analysis showed that workers with higher education levels, longer length of services, longer weekly working time, or more knowledge of occupational diseases showed higher willingness to participate in the scheme; workers who were exposed to physical hazards, had health records, or had participated in the existing medical insurance or industrial injury insurance were more willing to participate. Multiple linear regression analysis showed that with increasing average monthly wage, weekly working time, and self?health evaluation, the proportion of workers with willingness to pay increased; however, with increasing work intensity and awareness of occupational disease, the proportion of workers with willingness to pay decreased. The workers who were not covered by the industrial injury insurance paid more than those covered by the industrial injury insurance. The hypothetical industrial injury insurance scheme increased the applicability and advantage of independent third-party running and lifetime insurance, which significantly increased the workers' willingness to participate in or to pay for the insurance scheme. Therefore, the industrial injury insurance can be improved in these aspects to promote workers' willingness to participate in and to pay for the insurance scheme. This conclusion provided a reference for the solution of delayed or shirking corporate responsibility for paying the premium.