Commitment and Lapse Behavior in Long-Term Insurance: A Case Study

Jean Pinquet, Montserrat Guillén and Mercedes Ayuso
Additional contact information
Montserrat Guillén: UB - Universitat de Barcelona

Post-Print from HAL

Abstract: This paper presents a case study of a portfolio of individual long-term insurance contracts sold by a Spanish mutual company. We describe the risk levels, the rating structure and the implied cross-subsidies on a portfolio of policies providing health, life and long-term care insurance. We show evidence of reclassification risk through the history of disability spells. We also analyze the lapse behavior and seek to provide a rationale for the portfolio's dynamics. Lastly, we draw conclusions regarding the design of such contracts.

Keywords: Commitment; reclassification risk; long-term insurance.; Engagement; risque de reclassification; assurance à long terme. (search for similar items in EconPapers)
Date: 2011
Note: View the original document on HAL open archive server: https://hal.science/hal-00374303v2
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published in Journal of Risk and Insurance, 2011, 78 (4), pp.983-1002. ⟨10.1111/j.1539-6975.2011.01420.x⟩

Downloads: (external link)
https://hal.science/hal-00374303v2/document (application/pdf)

Related works:
Journal Article: Commitment and Lapse Behavior in Long‐Term Insurance: A Case Study (2011)
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:hal:journl:hal-00374303

DOI: 10.1111/j.1539-6975.2011.01420.x

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().