November 2020
Ermanno Pitacco, Director, Center for Insurance Research (former DemoLab), Academic Director of the Master in Insurance and Risk Management and Member of the Core Faculty in Insurance & Risk Management.
Daniela Tabakova, Core Faculty at MIB Trieste.
The second DemoLab* Paper is dedicated to the analysis of the so-called "Special-rate annuities", annuities whose premium is determined by the health conditions of the insured at the time of stipulation.
The critical aspect of these annuities is represented by the uncertainty on mortality data for the various diseases, which causes greater uncertainty in the duration of the annuity.
In order to evaluate these annuities, the DemoLab* Team decided to analyze the variability of the results of a portfolio including standard annuities and also Special-rate annuities. The Team projected and constructed innovative models for assessing the risk profile of portfolio including special-rate annuities.
The results are very encouraging and of great interest.
* Now Centre for Insurance Research
