W ich bowiem ocenie są one zarówno w języku potocznym, jak i w publikacjach naukowych stosowane w sposób dowolny, dość przypadkowy i nie zawsze dogłębnie przemyślany. W książce autorki przedstawiają, między innymi, propozycję porządku terminologicznego dotyczącego pojęć „cykl życia” i „bieg życia”. Only a significant reduction of the shock adjustment coefficient will return the situation to normality. The risk is higher the higher the age of entry. We consider a CIR process for the evolution of the interest rate, a Black & Scholes model for the dynamics of house prices and the Gompertz model for the trend in mortality Our results show that the decrease in the mortality curve due to Covid exposes the insurer to higher risks once the shock is reabsorbed. We analyse the combined impact of these risks on the pricing and the risk profile of reverse mortgage loans. In this context, Covid-19 has occurred and the insurer is faced with this additional source of risk. When the outstanding balance exceeds the housing value before the loan is settled, the insurer suffers an exposure to crossover risk induced by three risk factors: interest rates, house prices, and mortality rates. Reverse mortgage contracts involve a range of risks from the insurer’s perspective. We often hear the phrase “house rich and cash poor” to refer the increasing number of elderly persons who hold a substantial proportion of their assets in home equity. Reverse mortgages provide an alternative source of funding for retirement income and health care costs. The reverse mortgage market has been expanding rapidly in developed economies in recent years. In the language of behavioral finance and economics, a salient metric that adjusts chronological age for longevity risk might help capture the public’s attention, educate them about lifetime uncertainty and induce many of them to take action - such as working longer and/or retiring later. Practically speaking, in a world of growing mortality heterogeneity, the L-RaG age could be used for pension and retirement policy. The paper also discusses the connection between the proposed L-RaG age and the related concept of Biological age, from the medical and gerontology literature. Among other things, the author demonstrates that when properly benchmarked, the longevity-risk-adjusted global age of a 55-year-old Swedish male is 48, whereas a 55-year-old Russian male is closer in age to 67. To illustrate its salience and possible applications, the paper calibrates and presents L-RaG values using country data from the Human Mortality Database (HMD). This paper develops a computational framework for inverting Gompertz–Makeham mortality hazard rates, consistent with compensation laws of mortality for heterogeneous populations, to define a longevity-risk-adjusted global (L-RaG) age.
0 kommentar(er)
