Tonuity: A Novel Individual-Oriented Retirement Plan
An Chen, Peter Hieber & Jakob Klein (University of Ulm - Department of Mathematics and Economics) For insurance companies in Europe, the introduction of Solvency II leads to a tightening of rules for solvency capital provision. In life insurance, this especially affects retirement products that contain a significant portion of longevity risk (for example conventional annuities). Insurance companies might react by price increases for those products, and, at the same time, might think of alternatives that shift longevity risk (at...