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Distribution of Surplus in Life Insurance

Published online by Cambridge University Press:  29 August 2014

Henrik Ramlau-Hansen
Henrik Ramlau-Hansen*
Affiliation:
Baltica Insurance Company Ltd., Ballerup, Denmark
*
Baltica Insurance Company Ltd., Klausdalsbrovej 601, DK-2750 Ballerup, Denmark.
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Abstract

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This paper discusses distribution of surplus in life insurance within a general Markov chain framework. A conservative interest rate and a conservative set of transition intensities are used for reserving purposes whereas more realistic assumptions are used for the purpose of distributing surplus. The paper examines various actuarial aspects of distributing surplus through either cash bonuses, terminal bonuses or increased benefits. The results are illustrated by some examples.

Keywords

Distribution of surplusbonuswith profits annuity policywith profits disability policy.
Type
Articles
Information
ASTIN Bulletin: The Journal of the IAA , Volume 21 , Issue 1 , April 1991 , pp. 57 - 71
Copyright
Copyright © International Actuarial Association 1991

References

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