DUAL RANDOM MODEL OF INCREASING ANNUITY

The dual random models about the life insurance and social pension insurance have received considerable attention in the recent articles on actuarial theory and applications. This paper discusses a general kind of increasing annuity based on its force of interest accumulation function as a general random process. The dual random model of the present value of the benefits of the increasing annuity has been set, and their moments have been calculated under certain conditions.

Risk-minimizing Hedging Strategy for an Equity-indexed Annuity under a Regime Switching Model

The equity-indexed annuity （EIA） contract offers a proportional participation in the performance of a specified equity index, in addition to a guaranteed return on the single premium. How to manage the risk of the EIA is an important issue. This paper considers the hedging of the EIA. We assume that the parameters of the financial model depend on a continuous-time finite-state Markov chain and the Markov chain is observed, that is the Markov regime switching model. The state of the Markov chain can be interpreted as the state of an economy. Under the regime switching model~ we obtain the risk-minimizing hedging strategy for the EIA.

A Research on Whole Life Insurance

The formulas of premiums and premium reserves of a kind of mixed whole life insurance were obtained by the methods of actuarial science. Then we take a typical policy of whole life insurance in present Chinese market as an example to analyze its expense design and predict its market prospects.

Positive Stable Frailty Approach in the Construction of Dependence Life-Tables

Dependence may arise in insurance when the insureds are clustered into groups e.g. joint-life annuities. This dependence may be produced by sharing a common risk acting on mortality of members of the group. Various dependence models have been considered in literature; however, the focus has been on either the lower-tail dependence alone or upper-tail dependence alone. This article implements the frailty dependence approach to life insurance problems where most applications have been within medical setting. Our strategy is to use the conditional independence assumption given an observed association measure in a positive stable frailty approach to account for both lower and upper-tail dependence. The model is calibrated on the association of Kenyan insurers 2010 male and female published rates. The positive stable model is then proposed to construct dependence life-tables and generate life annuity payment streams in the competitive Kenyan market.

Practical Tips for Managing Annuities in China

How to handle annuities with security and efficiency is always a big and complicated issue for patentees.All patentees are looking for a reliable,precise and efficient manner in which to handle the large portfolio of patents.As we know,many of the giant international companies always prefer having an annuity vendor to monitor and manage worldwide patent rights,which may save them the time

对企业年金在中国养老保险体系中定位的再认识

目前我国企业年金发展缓慢的原因主要在于基本养老保险从价值目标体系的确立到制度的安排及具体的操作都缺乏明确的指向 ,致使企业年金难以定位。有鉴于此 ,笔者分析了基本养老保险改革的基点 ,认为罗尔斯的社会正义理论对我国社会养老保障的建立具有指导意义 ;主张在现有基础上 ,将统帐结合中社会统筹部分与个人帐户部分分解 ,并发展成为普惠式国民年金与企业年金 ,这样企业年金从“小补充”将过渡到“大补充”。

A proposal on auxiliary business insurance for peritoneal dialysis treatment

Background The peritoneal dialysis （PD） therapy for end stage renal disease （ESRD） is expensive. The main reason for non-acceptance onto dialysis programs is the great cost. In the present study, we design an auxiliary business insurance program to provide the potential ESRD patients who have no access to governmental medical insurance or can not afford the remaining part besides the limited reimbursement for peritoneal dialysis therapy. Methods The information applied in this study was extracted from the medical records of 641 PD patients, who were treated in two dialysis centers of the first and the third teaching hospitals of the Peking University respectively. A collective risk model was employed to estimate the expenses on PD therapy. Survival analyses were performed to obtain the average survival time of PD patients and the average length of time from the onset of the primary disease to the beginning of PD. An annuity method was used to determine the pure premium.Results For chronic nephritis, diabetes mellitus and hyperpietic as primary diseases, the mean survival time ± standard errors were （55.1±3.7） months, （38.9±3.2） months and （61.4±4.6） months respectively, and they were significantly different from each other （all P=0.000）. The expenses of whole PD therapy were 242 159.05 Yuan, 182 525.02 Yuan and 284 579.24 Yuan respectively. Conclusions An auxiliary business insurance for PD patients was designed with the pure premium for any individual who had chronic nephritis, diabetes mellitus or hyperpietic as primary disease was RMB 35.94 Yuan/year, 87.73 Yuan/year or 7.71 Yuan/year respectively without considering the additional premium for coping with the business expenditures and accidental risks.

Risk measures for variable annuities: A hermite series expansion approach

In this study,we propose an efficient approach to the calculation of risk measures for an insurer's liability from writing a variable annuity with guaranteed benefits.Our approach is based on a novel application of the Hermite series expansions on the transition density of a diffusion process to the insurance setting.We compare our method with existing methods in the literature,including the analytical method,spectral method and Green's function method,and illustrate its substantial advantages in calculating risk measures for variable annuities with different guarantee structures.The improved efficiency makes our method flexible to practical implementation in reporting risk measures on a daily basis.We also conduct a sensitivity analysis of the risk measures with respect to key parameters.