Centro de Documentacion de Fundación MAPFRE - Main determinants of profit-sharing policy in the French life insurance industry

MAP20180025938

Main determinants of profit-sharing policy in the French life insurance industry / Fabrice Borel-Mathurin..[et al.]

Sumario: The current low interest rate environment and the coming into force of Solvency II raise questions about the stability of the life insurance industry in Europe and the sustainability of traditional insurance products. We use a data set built from French supervisory reports to investigate the drivers of the participation rates (equivalent to annual yields) served on eurodenominated life insurance contracts over the period from 1999 to 2013. Our analysis con?rms practitioners' intuition on the alignment with the 10-year French government bond; we later analyse the deviation of the participation rates from this reference. Our data indicate that ?nancial margins are more strictly targeted than participation. We ?nd evidence that surrenders are fairly uncorrelated with participation, suggesting that other levers are used to monitor them. While higher asset returns can imply better yield for policyholders, riskier portfolios do not necessarily translate into better participation

En: Geneva papers on risk and insurance : issues and practice. - Geneva : The Geneva Association, 1976- = ISSN 1018-5895. - 02/07/2018 Volumen 43 Número 3 - julio 2018 , p. 420-455

1. Mercado de seguros . 2. Seguro de vida . 3. Productos de seguros . 4. Solvencia II . 5. Administración de la empresa de seguros . 6. Francia . 7. Europa . I. Borel-Mathurin, Fabrice . II. Título.