News Column

Findings from City University of London Broaden Understanding of Insurance Economics (Bringing cost transparency to the life annuity market)

August 1, 2014



By a News Reporter-Staff News Editor at Insurance Weekly News -- Current study results on Insurance Economics have been published. According to news reporting out of London, United Kingdom, by VerticalNews editors, research stated, "The financial industry has recently seen a push away from structured products and towards transparency. The trend is to decompose products, such that customers understand each component as well as its price."

Our news journalists obtained a quote from the research from the City University of London, "Yet the enormous annuity market combining investment and longevity has been almost untouched by this development. We suggest a simple decomposed annuity structure that enables cost transparency and could be linked to any investment fund."

According to the news editors, the research concluded: "It has several attractive features: (i) it works for any heterogeneous group; (ii) participants can leave before death without financial penalty; and (iii) participants have complete freedom over their own investment strategy."

For more information on this research see: Bringing cost transparency to the life annuity market. Insurance Mathematics & Economics, 2014;56():14-27. Insurance Mathematics & Economics can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands.

Our news journalists report that additional information may be obtained by contacting C. Donnelly, City University of London, Cass Business Sch, London EC1Y 8TZ, United Kingdom. Additional authors for this research include M. Guillen and J.P. Nielsen.

Keywords for this news article include: London, United Kingdom, Europe, Insurance Economics

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


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Source: Insurance Weekly News


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