Arbeitspapier

Accounting-based asset return smoothing in participating life annuities: Implications for annuitants, insurers, and policymakers

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This chapter outlines the conditions under which accounting-based smoothing can be beneficial for policyholders who hold with-profit or participating payout life annuities (PLAs). We use a realistically-calibrated model of PLAs to explore how alternative accounting techniques influence policyholder welfare as well as insurer profitability and stability. We find that accounting smoothing of participating life annuities is favorable to consumers and insurers, as it mitigates the impact of short-term volatility and enhances the utility of these long-term annuity contracts.

Language
Englisch

Bibliographic citation
Series: CFS Working Paper Series ; No. 518

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Maurer, Raimond
Mitchell, Olivia S.
Rogalla, Ralph
Siegelin, Ivonne
Event
Veröffentlichung
(who)
Goethe University Frankfurt, Center for Financial Studies (CFS)
(where)
Frankfurt a. M.
(when)
2015

Handle
URN
urn:nbn:de:hebis:30:3-382887
Last update
10.03.2025, 11:43 AM CET

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Object type

  • Arbeitspapier

Associated

  • Maurer, Raimond
  • Mitchell, Olivia S.
  • Rogalla, Ralph
  • Siegelin, Ivonne
  • Goethe University Frankfurt, Center for Financial Studies (CFS)

Time of origin

  • 2015

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