What Policy Features Determine Life Insurance Lapse? : An Analysis of the German Market

Item Type Journal paper
Abstract

With the largest data set ever used for this purpose (covering more than 1 million contracts), we analyze the impact of product and policyholder characteristics on lapse in the life insurance market. The data are provided by a German life insurer and cover two periods of market turmoil that we incorporate into our proportional hazards and generalized linear models. The results show that product characteristics such as product type or contract age and policyholder characteristics such as age or gender are important drivers for lapse rates. Our findings improve the understanding of lapse drivers and might be used by insurance managers and regulators for value- and risk-based management.

Authors Eling, Martin & Kiesenbauer, Dieter
Journal or Publication Title Journal of Risk and Insurance
Language English
Subjects business studies
HSG Classification contribution to scientific community
Refereed Yes
Date June 2014
Publisher American Risk and Insurance Association, Inc.
Place of Publication Malvern, PA
Volume 81
Number 2
Page Range 241-269
Number of Pages 29
ISSN 0022-4367
ISSN-Digital 1539-6975
Publisher DOI 10.1111/j.1539-6975.2012.01504.x
Depositing User Prof. Dr. Martin Eling
Date Deposited 05 Feb 2013 16:44
Last Modified 30 Oct 2018 17:43
URI: https://www.alexandria.unisg.ch/publications/220311

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Citation

Eling, Martin & Kiesenbauer, Dieter (2014) What Policy Features Determine Life Insurance Lapse? : An Analysis of the German Market. Journal of Risk and Insurance, 81 (2). 241-269. ISSN 0022-4367

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https://www.alexandria.unisg.ch/id/eprint/220311
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