Centro de Documentacion de Fundación MAPFRE - From intertemporal smoothing to intergenerational risk sharing : the effects of diferent return smoothing mechanisms in life insurance

MAP20260003030

From intertemporal smoothing to intergenerational risk sharing : the effects of diferent return smoothing mechanisms in life insurance / Alexander Kling, Timon Kramer and Jochen Ruß

Sumario: The document provides an in-depth analysis of various return-smoothing mechanisms applied in traditional life insurance products. It compares models based on historical averaging with others that employ collective accounts or buffers, assessing how each method affects annual volatility, risk-sharing, and the final wealth distribution of policyholders. The study shows that mechanisms relying solely on historical averages reduce year-to-year volatility but have little impact on overall maturity risk. In contrast, buffer-based systems can create genuine intergenerational risk-sharing and reduce uncertainty in the final outcome without affecting expected returns. The article also discusses implications for product design, regulation, and efficiency in retirement savings

En: European Actuarial Journal. - Cham, Switzerland : Springer Nature Switzerland AG, 2021-2022. - 11/08/2025 Volume 15 - Number 2 - August 2025 , p. 859 - 884

1. Seguros de vida riesgo . 2. Ahorro a largo plazo . 3. Modelos actuariales . 4. Riesgo financiero . I. Kramer, Timon . II. Ruß, Jochen . III. Springer . IV. Título.