1. Main Determinants of Profit-Sharing Policy in the French Life Insurance Industry
- Author
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Fabrice Borel-Mathurin, Stéphane Loisel, Pierre-Emmanuel Darpeix, Quentin Guibert, Autorité de Contrôle Prudentiel et de Résolution (ACPR), Autorité de Contrôle Prudentiel et de Résolution, Paris-Jourdan Sciences Economiques (PSE), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Laboratoire de Sciences Actuarielle et Financière (SAF), Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon, Guibert, Quentin, and École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)
- Subjects
Economics and Econometrics ,Yield (finance) ,01 natural sciences ,[SHS]Humanities and Social Sciences ,010104 statistics & probability ,Profit sharing ,Accounting ,Life insurance ,0502 economics and business ,0101 mathematics ,[SHS.ECO] Humanities and Social Sciences/Economics and Finance ,ComputingMilieux_MISCELLANEOUS ,Risk management ,050208 finance ,Actuarial science ,business.industry ,05 social sciences ,Asset return ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,General Business, Management and Accounting ,Uncorrelated ,Government bond ,[SHS] Humanities and Social Sciences ,Business ,Finance ,Panel data - Abstract
We use a brand new data-set built from French supervisory reports to investigate the drivers of the participation rates served on euro-denominated life-insurance contracts over the period 1999-2013. Our analysis confirms practitioners’ insight on the alignment with the 10-years French government bond, yet we show that on aggregate, insurers serve less than this target. Our data indicate that financial margins are more strictly targeted than participation. We find evidence that lapses are fairly uncorrelated with participation, suggesting other levers to pilot surrenders. If higher asset returns can imply better yield for policyholders, riskier portfolios do not translate into better participation
- Published
- 2018
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