Minimum Rate of Return Guarantees: The Danish Case
- 1 January 2002
- journal article
- Published by Taylor & Francis Ltd in Scandinavian Actuarial Journal
- Vol. 2002 (4), 280-318
- https://doi.org/10.1080/03461230110106282
Abstract
. We analyze minimum rate of return guarantees for life insurance (investment) contractsand pension plans with a smooth surplus distribution mechanism. We specifically model the smoothingmechanism used by most Danish life insurance companies and pension funds. The annual distribution ofbonus will be based on this smoothing mechanism after taking the minimum rate of return guarantee intoaccount. In addition, based on the contribution method, the customer will receive a final...Keywords
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