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학술저널

Measuring Annuity Risks

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This paper examines the riskiness of annuities to insurance companies using three measures of risk: the probability of loss, the Value at Risk (VaR), and the Expected Tail Loss (ETL). Results suggest that portfolios with large numbers of annuities are effectively hedged against mortality risk provided there are no subsequent mortality improvements. However, plausible mortality improvements lead to considerable increases in annuity risks.

Introduction

A Single Annuity with No Mortality Improvement

An Annuity Portfolio With No Mortality Improvement

The Implications of Unanticipated Mortality Improvements

Conclusions

References

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