New Findings Reported from University of Amsterdam Describe Advances in Insurance Economics (Redistribution of longevity risk: The effect of…

New Findings Reported from University of Amsterdam Describe Advances in Insurance Economics (Redistribution of longevity risk: The effect of heterogeneous mortality beliefs)

By a News Reporter-Staff News Editor at Insurance Weekly News -- Current study results on Economics - Insurance Economics have been published. According to news reporting from Amsterdam, Netherlands, by VerticalNews journalists, research stated, "Existing literature regarding the natural hedge potential that arises from combining different longevity linked liabilities typically does not address the question how changes in the liability mix can be obtained."

The news correspondents obtained a quote from the research from the University of Amsterdam, "We consider firms who aim to exploit the benefits of natural hedge potential by redistributing their risks, and characterize the risk redistributions that will arise when the parties bargain for a redistribution of risk that weakly benefits them all."

According to the news reporters, the research concluded: "We analyze the effects of heterogeneity in the beliefs regarding the probability distribution of future mortality rates on the properties of these risk redistributions, and provide a numerical illustration for a case where an insurer with a portfolio of term assurance contracts and a pension fund with a portfolio of life annuities redistribute their risks."

For more information on this research see: Redistribution of longevity risk: The effect of heterogeneous mortality beliefs. Insurance Mathematics & Economics, 2017;72():175-188. Insurance Mathematics & Economics can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands.

Our news journalists report that additional information may be obtained by contacting T.J. Boonen, University of Amsterdam, Amsterdam Sch Econ, NL-1012 WX Amsterdam, Netherlands. Additional authors for this research include A. De Waegenaere and H. Norde.

Keywords for this news article include: Amsterdam, Netherlands, Europe, Insurance Economics, Economics, University of Amsterdam.

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