Reports on Actuarial Science from Aix-Marseille University Provide New Insights (Broken-heart, Common Life, Heterogeneity: Analyzing The Spousal…

Reports on Actuarial Science from Aix-Marseille University Provide New Insights (Broken-heart, Common Life, Heterogeneity: Analyzing The Spousal Mortality Dependence)

By a News Reporter-Staff News Editor at Insurance Weekly News -- Investigators publish new report on Science - Actuarial Science. According to news reporting originating from Marseille, France, by VerticalNews editors, the research stated, "Using data on joint annuities, we conduct an analysis of the inter-couple lifetime dependence. We estimate a mixed proportional hazards model with treatment effects, which disentangles the broken-heart syndrome from the spurious risk dependence induced by unobserved heterogeneities."

Our news editors obtained a quote from the research from Aix-Marseille University, "We use a flexible semi-parametric distribution for the unobserved heterogeneities to allow for either positive or negative spurious risk dependence. We find that the effect of losing one's spouse is asymmetric for the two sexes. Moreover, although the broken-heart syndrome explains a large portion of the dependency, there is evidence of positive spurious risk dependence. These findings have important implications for the pricing of joint insurance products."

According to the news editors, the research concluded: "Failure to take into account either of these two effects leads to pricing error that can be either positive or negative, depending on the characteristics of the couple."

For more information on this research see: Broken-heart, Common Life, Heterogeneity: Analyzing The Spousal Mortality Dependence. Astin Bulletin, 2017;47(3):837-874. Astin Bulletin can be contacted at: Cambridge Univ Press, Edinburgh Bldg, Shaftesbury Rd, CB2 8RU Cambridge, England.

The news editors report that additional information may be obtained by contacting Y. Lu, Aix Marseille Univ, Aix Marseille Sch Econ, F-13001 Marseille, France.

Keywords for this news article include: Marseille, France, Europe, Actuarial Science, Science, Aix-Marseille University.

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