The Costs of annuitising : are retirees fairly charged?

Recurso electrónico / Electronic resource
Registro MARC
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008  200722e20200701che|||p |0|||b|eng d
040  ‎$a‎MAP‎$b‎spa‎$d‎MAP
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100  ‎$0‎MAPA20200016922‎$a‎Dassatti, Cecilia
24514‎$a‎The Costs of annuitising‎$b‎: are retirees fairly charged?‎$c‎Cecilia Dassatti, Rodrigo Lluberas
520  ‎$a‎This study analyses the costs associated with annuitisation and provides estimates of what we call the "efficient annuity margin", which is the margin over the market rate that an efficient insurance company could charge in order to cover its cost. Using data from the financial statements filed by insurance companies to the regulator, we estimate a translog cost function following the stochastic frontier methodology. Our data set consists of quarterly balance sheet intormation from all of the Uruguayan insurance companies over the period 2005-2015. We find that the average cost inefficiency is 17.8% and that there is substantial heterogeneity across firms.ln addition, our results show that the annuity margin which an efficient insurance company could charge in order to cover its adrrunistrative costs is 11 basis points over the market long-term interest rate. Our proposed method may allow the identification of the administrative and selection costs of providing annuities.
650 4‎$0‎MAPA20080590567‎$a‎Empresas de seguros
650 4‎$0‎MAPA20080602437‎$a‎Matemática del seguro
650 4‎$0‎MAPA20080563974‎$a‎Rentabilidad
650 4‎$0‎MAPA20080586447‎$a‎Modelo estocástico
7001 ‎$0‎MAPA20200016977‎$a‎Lluberas, Rodrigo
7730 ‎$w‎MAP20077100215‎$t‎Geneva papers on risk and insurance : issues and practice‎$d‎Geneva : The Geneva Association, 1976-‎$x‎1018-5895‎$g‎01/07/2020 Volumen 45 Número 3 - julio 2020 , p. 535-557