Profitability vs. Attractiveness Within a Performance Analysis of a Life Annuity Business

Emilia Di Lorenzo (), Albina Orlando () and Marilena Sibillo ()
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Emilia Di Lorenzo: University of Naples Federico II – Via Cinthia, Department of Economic and Statistical Sciences
Albina Orlando: National Research Council – Via P. Castellino
Marilena Sibillo: University of Salerno – Campus Universitario, Department of Economics and Statistics

A chapter in Mathematical and Statistical Methods for Actuarial Sciences and Finance, 2017, pp 109-118 from Springer

Abstract: Abstract Combining insurer’s profitability with products’ attractiveness in terms of marketing competitiveness is a critical issue within the risk/profit management of an insurance business. In particular life insurance products are characterized by the presence of financial and demographic risk sources, whose combined effect requires suitable management strategies. This paper deals with the impact of the load factor on life annuity portfolio performance from the insurers point of view. The aim is to build a performance indicator that clearly points out the role of the load factor in the performance making, giving to it a central role in the company management strategy. Such index is characterized by a simple mathematical structure and fits to the purpose: in fact it provides clear indications to the manager about the influence of the load factor on the performance of the life annuity business line.

Keywords: Life Annuity; Dielectric Point; Simple Mathematical Structure; Deferment Period; Risk-adjusted Return On Capital (RAROC) (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-319-50234-2_9

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DOI: 10.1007/978-3-319-50234-2_9

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