FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W1519232008> ?p ?o ?g. }

• W1519232008 abstract "Annuities markets around the world are small. However, they have been growing in recent years and are likely to grow further as a result of reforms in public social security systems and private pension plans, that partially replace defined benefit plans with funded defined contribution plans. When people retire they may choose, and are sometimes required, to annuitize these defined contribution savings. Therefore, it is important to learn whether or not annuities markets exist, how they operate and what kinds of market failure can be anticipated. Several papers have already analyzed US annuities markets. This paper extends that analysis by examining annuities markets in other countries. We present evidence from Canada, the UK, Switzerland, Australia, Israel, Chile and Singapore - a variety of high and middle-income countries - and replicate the results from the US. This paper focuses on analyses of the expected present discounted value (EPDV) of cash flows from the annuity, and the money's worth ratio (MWR), which is the EPDV divided by the initial premium cost. We find that, when discounting at the risk-free rate, MWR's for annuitants are surprisingly high - greater than 95% in most countries and sometimes greater than 100%. MWR's for the average population member are lower but still exceed 90% in most cases. We show that differential interest rate structures largely explain differential monthly payouts across countries, while differential mortality rates, especially projected improvement factors, help explain differences in measured MWR's, given these monthly payouts and interest rates. The high MWR's raise the question: How do insurance companies cover their costs despite these high MWR's? We hypothesize that for each annuity sale, insurance companies get a large sum of money up-front that they invest in a portfolio of corporate bonds, mortgages, and some equities, earning a rate of return that exceeds the risk-free rate by 1.3% or more per year. They turn this risky portfolio into a safer annuity by a variety of risk-intermediation, term-intermediation techniques. This allows them to sell a product that is nearly risk-free, while earning a that covers their costs. We present data on cost and investment returns that are consistent with this hypothesis. The limited opportunity to earn this spread may help explain why price indexed annuities in the UK charge higher loads to cover their costs and risks. For consumers who would prefer to accept this investment risk and capture this spread themselves, the appropriate discount rate is higher and the MWR is lower, helping to explain the low demand for annuities in voluntary markets." @default.
• W1519232008 created "2016-06-24" @default.
• W1519232008 creator A5053869245 @default.
• W1519232008 creator A5054609992 @default.
• W1519232008 date "2001-01-01" @default.
• W1519232008 modified "2023-10-18" @default.
• W1519232008 title "Annuities Markets Around the World: Money's Worth and Risk Intermediation" @default.
• W1519232008 cites W1494253160 @default.
• W1519232008 cites W1507751080 @default.
• W1519232008 cites W1560686973 @default.
• W1519232008 cites W1573704094 @default.
• W1519232008 cites W1990762579 @default.
• W1519232008 cites W2004717177 @default.
• W1519232008 cites W2057248458 @default.
• W1519232008 cites W2070440183 @default.
• W1519232008 cites W2087923742 @default.
• W1519232008 cites W2109379073 @default.
• W1519232008 cites W3122871634 @default.
• W1519232008 cites W3123576249 @default.
• W1519232008 cites W3124255721 @default.
• W1519232008 cites W3124406936 @default.
• W1519232008 cites W3125959084 @default.
• W1519232008 cites W4248497521 @default.
• W1519232008 doi "https://doi.org/10.2139/ssrn.287375" @default.
• W1519232008 hasPublicationYear "2001" @default.
• W1519232008 type Work @default.
• W1519232008 sameAs 1519232008 @default.
• W1519232008 citedByCount "47" @default.
• W1519232008 countsByYear W15192320082012 @default.
• W1519232008 countsByYear W15192320082013 @default.
• W1519232008 countsByYear W15192320082014 @default.
• W1519232008 countsByYear W15192320082015 @default.
• W1519232008 countsByYear W15192320082017 @default.
• W1519232008 countsByYear W15192320082018 @default.
• W1519232008 countsByYear W15192320082019 @default.
• W1519232008 countsByYear W15192320082020 @default.
• W1519232008 countsByYear W15192320082023 @default.
• W1519232008 crossrefType "journal-article" @default.
• W1519232008 hasAuthorship W1519232008A5053869245 @default.
• W1519232008 hasAuthorship W1519232008A5054609992 @default.
• W1519232008 hasBestOaLocation W15192320082 @default.
• W1519232008 hasConcept C10138342 @default.
• W1519232008 hasConcept C106159729 @default.
• W1519232008 hasConcept C144133560 @default.
• W1519232008 hasConcept C162118730 @default.
• W1519232008 hasConcept C162324750 @default.
• W1519232008 hasConcept C2779143981 @default.
• W1519232008 hasConcept C556758197 @default.
• W1519232008 hasConcept C65146658 @default.
• W1519232008 hasConcept C73283319 @default.
• W1519232008 hasConceptScore W1519232008C10138342 @default.
• W1519232008 hasConceptScore W1519232008C106159729 @default.
• W1519232008 hasConceptScore W1519232008C144133560 @default.
• W1519232008 hasConceptScore W1519232008C162118730 @default.
• W1519232008 hasConceptScore W1519232008C162324750 @default.
• W1519232008 hasConceptScore W1519232008C2779143981 @default.
• W1519232008 hasConceptScore W1519232008C556758197 @default.
• W1519232008 hasConceptScore W1519232008C65146658 @default.
• W1519232008 hasConceptScore W1519232008C73283319 @default.
• W1519232008 hasLocation W15192320081 @default.
• W1519232008 hasLocation W15192320082 @default.
• W1519232008 hasOpenAccess W1519232008 @default.
• W1519232008 hasPrimaryLocation W15192320081 @default.
• W1519232008 hasRelatedWork W1550817206 @default.
• W1519232008 hasRelatedWork W2017732384 @default.
• W1519232008 hasRelatedWork W2136069912 @default.
• W1519232008 hasRelatedWork W2156266242 @default.
• W1519232008 hasRelatedWork W2415616883 @default.
• W1519232008 hasRelatedWork W2612556388 @default.
• W1519232008 hasRelatedWork W2951794101 @default.
• W1519232008 hasRelatedWork W3009815140 @default.
• W1519232008 hasRelatedWork W3080846695 @default.
• W1519232008 hasRelatedWork W3216636397 @default.
• W1519232008 isParatext "false" @default.
• W1519232008 isRetracted "false" @default.
• W1519232008 magId "1519232008" @default.
• W1519232008 workType "article" @default.