Main determinants of profit sharing policy in the French life insurance industry

Fabrice Borel-Mathurin, Pierre-Emmanuel Darpeix, Q. Guibert and Stéphane Loisel

Debats Economiques et financiers from Banque de France

Abstract: We use a brand new data-set built from French supervisory reports to investigate the drivers of the participation rates (equivalent to annual yields) served on euro-denominated life-insurance contracts over the period 1999-2013. Our analysis confirms practitioners’ insight on the alignment with the 10-year French government bond and we analyze the departure of the participation rates away from this reference. Our data indicate that financial margins are more strictly targeted than participation. We find evidence that surrenders are fairly uncorrelated with participation, suggesting that other levers are used to monitor them. If higher asset returns can imply better yield for policyholders, riskier portfolios do not necessarily translate into better participation.

Keywords: participation rate; taux de revalorisation; profit sharing policy; life insurance; panel data; regulatory database. (search for similar items in EconPapers)
JEL-codes: E21 E49 G11 G22 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2015
New Economics Papers: this item is included in nep-ias and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Main Determinants of Profit-Sharing Policy in the French Life Insurance Industry (2018)
Working Paper: Main Determinants of Profit-Sharing Policy in the French Life Insurance Industry (2018)
Working Paper: Main Determinants of Profit-Sharing Policy in the French Life Insurance Industry (2018)
Working Paper: Main Determinants of Profit Sharing Policy in the French Life Insurance Industry (2015)
Working Paper: Main Determinants of Profit Sharing Policy in the French Life Insurance Industry (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:decfin:17

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