MODELLING THE GUARANTEE LIABILITY UNDER UNIT-LINKED CONTRACTS

Cristina Ciumaș and Diana-Maria Chiș
Additional contact information
Cristina Ciumaș: Faculty of Economics and Business Administration, Babeş-Bolyai University, Cluj-Napoca
Diana-Maria Chiș: Faculty of Economics and Business Administration, Babeş-Bolyai University, Cluj-Napoca

SEA - Practical Application of Science, 2015, issue 7, 165-170

Abstract: Unit-linked contracts are wrapped with some death, maturity and accumulation guarantees such as the guaranteed minimum maturity benefit, the guaranteed minimum death benefit, the guaranteed minimum accumulation benefit, the guaranteed minimum income benefit, and/or the guaranteed minimum surrender benefit. According to Romanian legislation which regulates the unit-linked life insurance market, unit-linked life insurance contracts pass most of the investment risk to the policyholder and involve no investment risk for the insurer. Although the Romanian legislation authorizes the Romanian insurers to offer unit-linked contracts without investment guarantees, this research provides a proposal of a theoretical and empirical basis for modelling liabilities for unit-linked insurance contracts with incorporated investment guarantees. The aim of this study is to offer an optimal theoretical approach for simulating liabilities for unit-linked life insurance contracts with incorporated death benefit and maturity benefit.

Keywords: Guarantee; Liability; Unit-Linked; Death Benefit; Maturity Benefit (search for similar items in EconPapers)
JEL-codes: C58 G12 G17 G22 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://seaopenresearch.eu/Journals/articles/SPAS_7_25.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cmj:seapas:y:2015:i:7:p:165-170

Access Statistics for this article

SEA - Practical Application of Science is currently edited by Romanian Foundation for Business Intelligence

More articles in SEA - Practical Application of Science from Romanian Foundation for Business Intelligence, Editorial Department
Bibliographic data for series maintained by Serghie Dan ().