The Optimisation of Insurance Contracts on the Viatical Market

• Autorzy: Joanna Dębicka , Stanisław Heilpern
• Języki publikacji: EN

Abstrakty

EN

We focus on ensuring the financial requirements of a person that has life insurance and needs money because of suffering from a terminal illness that requires costly diagnosis and treatment. On the secondary market of life insurance (the viatical market), companies offer purchase of rights to benefits after the death of the insured. The paper aims to analyse the problem of optimising the life settlement for the insured. We determine the amount of the nominal value of the benefit which the insured intends to sell in such a way so that the number of benefits and premiums maximise the average amount of funds available to the insured. We use various approaches of the insured to risk to find an optimal solution, which also allows taking into consideration the different kinds of human behaviour in risky conditions. The obtained theoretical results are illustrated with examples demonstrating the possibility of their application in practice. (original abstract)

Słowa kluczowe

EN

Insurance contract; Life insurance; Aftermarket; Expected utility theory; Prospect theory; Chronic diseases

PL

Umowa ubezpieczeniowa; Ubezpieczenia na życie; Rynek wtórny; Teoria oczekiwanej użyteczności; Teoria perspektywy; Choroby przewlekłe

• Czasopismo: Operations Research and Decisions
• Rocznik: 2020
• Tom: 30
• Numer: nr 2
• Strony: 5--27

Twórcy

autor

Joanna Dębicka

• Wrocław University of Economics and Business, Wrocław, Poland

autor

Stanisław Heilpern

• Wrocław University of Economics and Business, Wrocław, Poland

Bibliografia

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Identyfikatory

DOI

10.37190/ord200201