IDEAS home Printed from https://ideas.repec.org/a/taf/uaajxx/v2y1998i1p79-86.html
   My bibliography  Save this article

A Model for Analyzing the Impact of Selective Lapsation on Mortality

Author

Listed:
  • Bruce Jones

Abstract

This paper presents a model for examining the effect of various relationships between mortality rates and lapse rates on the mortality experience of a cohort of insured lives. The approach is individual rather than the aggregate traditionally used in analyzing selective lapsation. The model assumes that insured lives are healthy at policy issue, but later may move to an impaired state from which the lapse rate is zero. Associated with each insured is an unobservable “risk level” random variable, which reflects the heterogeneity of the insured group. Individual mortality and lapse rates are functions of the risk level. A numerical illustration provides some interesting results obtained by using this model.

Suggested Citation

  • Bruce Jones, 1998. "A Model for Analyzing the Impact of Selective Lapsation on Mortality," North American Actuarial Journal, Taylor & Francis Journals, vol. 2(1), pages 79-86.
  • Handle: RePEc:taf:uaajxx:v:2:y:1998:i:1:p:79-86
    DOI: 10.1080/10920277.1998.10595677
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10920277.1998.10595677
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/10920277.1998.10595677?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nadine Gatzert & Gudrun Hoermann & Hato Schmeiser, 2009. "The Impact of the Secondary Market on Life Insurers’ Surrender Profits," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 76(4), pages 887-908, December.
    2. Jir^o Akahori & Yuuki Ida & Maho Nishida & Shuji Tamada, 2020. "The Thermodynamic Approach to Whole-Life Insurance: A Method for Evaluation of Surrender Risk," Papers 2012.09606, arXiv.org.
    3. Barsotti, Flavia & Milhaud, Xavier & Salhi, Yahia, 2016. "Lapse risk in life insurance: Correlation and contagion effects among policyholders’ behaviors," Insurance: Mathematics and Economics, Elsevier, vol. 71(C), pages 317-331.
    4. Valdez, Emiliano A., 2001. "Bivariate analysis of survivorship and persistency," Insurance: Mathematics and Economics, Elsevier, vol. 29(3), pages 357-373, December.
    5. Valdez, Emiliano A. & Vadiveloo, Jeyaraj & Dias, Ushani, 2014. "Life insurance policy termination and survivorship," Insurance: Mathematics and Economics, Elsevier, vol. 58(C), pages 138-149.
    6. Hoermann, Gudrun & Ruß, Jochen, 2008. "Enhanced annuities and the impact of individual underwriting on an insurer's profit situation," Insurance: Mathematics and Economics, Elsevier, vol. 43(1), pages 150-157, August.
    7. Kwon, Hyuk-Sung & Jones, Bruce L., 2008. "Applications of a multi-state risk factor/mortality model in life insurance," Insurance: Mathematics and Economics, Elsevier, vol. 43(3), pages 394-402, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:uaajxx:v:2:y:1998:i:1:p:79-86. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/uaaj .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.