This study develops a contingent framework to examine the contract issuance
of alternative unit-linked insurance plans (ULIPs) considering policy
surrender. We show that the extension of the aggressive/conservative-plan
policy surrender date enhances policyholder protection and insurer default
risk when the two optimal guaranteed rates of the programs remain fixed.
Increasing aggressive-plan policy surrenders improves policyholder protection
and insurer survival when the optimal invested-asset interest rate
remains unchanged. Increasing conservative-plan policy surrenders negatively
impacts policyholder protection but supports insurer survival. Our
results complement the literature by demonstrating that ULIPs are relevant
to policyholder protection and insurer survival in the asset-liability matching
management.
關聯:
Emerging Markets Finance and Trade v.58 n.9, p.2637-2651
