What Policy Features Determine Life Insurance Lapse? An Analysis of the German Market
Type
applied research project
Start Date
January 1, 2010
End Date
December 31, 2013
Status
completed
Keywords
Lebensversicherung
Storno
GLM
Description
With the largest dataset ever used for this purpose (covering more than one million contracts), we analyze the impact of product and policyholder characteristics on lapse in the life insurance market. The data is provided by a German life insurer and covers two periods of market turmoil that we incorporate into our 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.
Member contributor(s)
Funder
Topic(s)
Lebensversicherung
Storno
GLM
Method(s)
GLM
Range
HSG Internal
Range (De)
HSG Intern
Division(s)
Eprints ID
211035