Annuity Markets In Chile

Author : Roberto Rezende Rocha,Craig Thorburn
Publisher : World Bank Publications
Page : 292 pages
File Size : 46,7 Mb
Release : 2007
Category : Business & Economics
ISBN : 9780821366677

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Developing Annuities Markets by Roberto Rezende Rocha,Craig Thorburn Pdf

Developing Annuities Markets: The Experience of Chile is part of a multicountry World Bank project analyzing the market for retirement products. Among countries that have reformed their pension systems since the early 1990s, the Chilean case has emerged as the most relevant for drawing policy lessons on the role of the private sector in the provision of retirement income for two reasons: the depth, sophistication, and efficiency of the country's retirement products market, and the fact that this market was successfully developed from scratch by a middle-income country. The book examines in det.

Author : Eduardo Walker
Publisher : World Bank Publications
Page : 32 pages
File Size : 45,5 Mb
Release : 2006
Category : Annuities
ISBN : 8210379456XXX

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Annuity Markets in Chile by Eduardo Walker Pdf

Abstract: "The author studies annuity rates in Chile and relates them with industry competition. He finds (1) that annuity insurance companies paying higher broker commissions paid lower annuity rates; and (2) a structural break of the long-run elasticity of annuity rates to the risk-free rate in 2001. Moreover, this structural break coincided with the submission of a new draft pension law proposing greater transparency in annuity markets and a generalized drop in broker commissions. The high commissions charged in the 1990s were partly returned to annuitants as informal (and illegal) cash rebates. Myopic pensioners preferred cash rebates over present values. Thus, the legal threat caused the drop in broker commissions, reduced the illegal practice of cash rebates, increased competition by way of annuity rates, and raised the long-run elasticity to one."--World Bank web site.

Author : Roberto Rocha,Marco Morales,Craig Thorburn
Publisher : Unknown
Page : 128 pages
File Size : 42,7 Mb
Release : 2012
Category : Electronic
ISBN : OCLC:931673658

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An Empirical Analysis of the Annuity Rate in Chile by Roberto Rocha,Marco Morales,Craig Thorburn Pdf

Empirical analyses of annuities markets have been limited to a few industrial countries and restricted by data limitations. Chile provides excellent conditions for research on annuities because of the depth of its market and the availability of data. The authors use a panel of life insurance company data to examine econometrically the main determinants of the annuity rate, defined as the internal rate of return on annuities. The results indicate that the annuity rate is determined by the risk-free interest rate, the share of privately-issued higher yield securities in the portfolio of providers as a proxy for the spread over the risk-free rate, the leverage of providers, the level of broker's commissions, the market share of individual providers, the level of the premium, and the degree of market competition. The results also show that efforts to improve market transparency produced structural shifts in the parameters of the annuity rate equation. The results are consistent with separate research on money's worth ratios, and indicate the need to develop appropriate financial instruments, allowing providers to hedge their risks while extracting higher returns, and also to ensure competition and transparency in annuities markets, in order to ensure good outcomes for annuitants.

Author : Eduardo Walker
Publisher : Unknown
Page : 32 pages
File Size : 46,9 Mb
Release : 2016
Category : Electronic
ISBN : OCLC:1290703645

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Annuity Markets in Chile by Eduardo Walker Pdf

The author studies annuity rates in Chile and relates them with industry competition. He finds (1) that annuity insurance companies paying higher broker commissions paid lower annuity rates; and (2) a structural break of the long-run elasticity of annuity rates to the risk-free rate in 2001. Moreover, this structural break coincided with the submission of a new draft pension law proposing greater transparency in annuity markets and a generalized drop in broker commissions. The high commissions charged in the 1990s were partly returned to annuitants as informal (and illegal) cash rebates. Myopic pensioners preferred cash rebates over present values. Thus, the legal threat caused the drop in broker commissions, reduced the illegal practice of cash rebates, increased competition by way of annuity rates, and raised the long-run elasticity to one.

Author : Roberto Rezende Rocha,Marco Morales,Craig Thorburn
Publisher : World Bank Publications
Page : 30 pages
File Size : 45,9 Mb
Release : 2006
Category : Annuities
ISBN : 9780530155241

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An Empirical Analysis of the Annuity Rate in Chile by Roberto Rezende Rocha,Marco Morales,Craig Thorburn Pdf

"Empirical analyses of annuities markets have been limited to a few industrial countries and restricted by data limitations. Chile provides excellent conditions for research on annuities because of the depth of its market and the availability of data. The authors use a panel of life insurance company data to examine econometrically the main determinants of the annuity rate, defined as the internal rate of return on annuities. The results indicate that the annuity rate is determined by the risk-free interest rate, the share of privately-issued higher yield securities in the portfolio of providers as a proxy for the spread over the risk-free rate, the leverage of providers, the level of broker's commissions, the market share of individual providers, the level of the premium, and the degree of market competition. The results also show that efforts to improve market transparency produced structural shifts in the parameters of the annuity rate equation. The results are consistent with separate research on money's worth ratios, and indicate the need to develop appropriate financial instruments, allowing providers to hedge their risks while extracting higher returns, and also to ensure competition and transparency in annuities markets, in order to ensure good outcomes for annuitants. "--World Bank web site.

Author : Craig Thorburn,Roberto Rocha,Marco Morales
Publisher : Unknown
Page : 128 pages
File Size : 47,8 Mb
Release : 2012
Category : Electronic
ISBN : OCLC:931673563

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An Analysis of Money's Worth Ratios in Chile by Craig Thorburn,Roberto Rocha,Marco Morales Pdf

Empirical analyses of annuities markets have been limited to a few industrial countries and restricted by data limitations. Chile provides excellent conditions for research on annuities because of the depth of its market and the availability of data. The authors use an extensive dataset on individual annuities to examine econometrically a measure of market performance-money's worth ratios (MWRs)-or the ratio of the expected present value of annuity payments to the premium. The results show that annuitants in Chile have generally a good deal for their premiums, as indicated by MWRs higher than one, and also higher than those estimated for other countries. The difference between Chile and other countries is striking considering that annuities in Chile are indexed to prices. The wide range of indexed instruments in Chile, allowing providers to hedge their risks while extracting higher returns, helps explain the difference. The high degree of market competition has also contributed to this outcome. Efforts to improve market transparency through a new electronic quotation system have decreased the dispersion of MWRs. Finally, MWRs tend to decrease for contracts with longer durations, reflecting pricing for higher longevity and reinvestment risks. These results are consistent with separate research on the annuity rate, and indicate the need to ensure competition and market transparency, as well as to develop appropriate financial instruments for providers to ensure good outcomes for annuitants.

Author : Marco Morales
Publisher : Unknown
Page : 33 pages
File Size : 49,5 Mb
Release : 2016
Category : Electronic
ISBN : OCLC:1290703977

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An Analysis of Money's Worth Ratios in Chile by Marco Morales Pdf

Empirical analyses of annuities markets have been limited to a few industrial countries and restricted by data limitations. Chile provides excellent conditions for research on annuities because of the depth of its market and the availability of data. The authors use an extensive dataset on individual annuities to examine econometrically a measure of market performance - money's worth ratios (MWRs) - or the ratio of the expected present value of annuity payments to the premium. The results show that annuitants in Chile have generally a good deal for their premiums, as indicated by MWRs higher than one, and also higher than those estimated for other countries. The difference between Chile and other countries is striking considering that annuities in Chile are indexed to prices. The wide range of indexed instruments in Chile, allowing providers to hedge their risks while extracting higher returns, helps explain the difference. The high degree of market competition has also contributed to this outcome. Efforts to improve market transparency through a new electronic quotation system have decreased the dispersion of MWRs. Finally, MWRs tend to decrease for contracts with longer durations, reflecting pricing for higher longevity and reinvestment risks. These results are consistent with separate research on the annuity rate, and indicate the need to ensure competition and market transparency, as well as to develop appropriate financial instruments for providers to ensure good outcomes for annuitants.

Author : Craig Thorburn,Roberto Rezende Rocha,Marco Morales
Publisher : World Bank Publications
Page : 33 pages
File Size : 55,8 Mb
Release : 2006
Category : Annuities
ISBN : 8210379456XXX

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An Analysis of Money's Worth Ratios in Chile by Craig Thorburn,Roberto Rezende Rocha,Marco Morales Pdf

Abstract: "Empirical analyses of annuities markets have been limited to a few industrial countries and restricted by data limitations. Chile provides excellent conditions for research on annuities because of the depth of its market and the availability of data. The authors use an extensive dataset on individual annuities to examine econometrically a measure of market performance-money's worth ratios (MWRs)-or the ratio of the expected present value of annuity payments to the premium. The results show that annuitants in Chile have generally a good deal for their premiums, as indicated by MWRs higher than one, and also higher than those estimated for other countries. The difference between Chile and other countries is striking considering that annuities in Chile are indexed to prices. The wide range of indexed instruments in Chile, allowing providers to hedge their risks while extracting higher returns, helps explain the difference. The high degree of market competition has also contributed to this outcome. Efforts to improve market transparency through a new electronic quotation system have decreased the dispersion of MWRs. Finally, MWRs tend to decrease for contracts with longer durations, reflecting pricing for higher longevity and reinvestment risks. These results are consistent with separate research on the annuity rate, and indicate the need to ensure competition and market transparency, as well as to develop appropriate financial instruments for providers to ensure good outcomes for annuitants."--World Bank web site.

Author : Eduardo Walker H.
Publisher : Unknown
Page : 36 pages
File Size : 43,8 Mb
Release : 2006
Category : Annuities
ISBN : UCSD:31822034390286

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Annuity Markets in Chile by Eduardo Walker H. Pdf

"The author studies annuity rates in Chile and relates them with industry competition. He finds (1) that annuity insurance companies paying higher broker commissions paid lower annuity rates; and (2) a structural break of the long-run elasticity of annuity rates to the risk-free rate in 2001. Moreover, this structural break coincided with the submission of a new draft pension law proposing greater transparency in annuity markets and a generalized drop in broker commissions. The high commissions charged in the 1990s were partly returned to annuitants as informal (and illegal) cash rebates. Myopic pensioners preferred cash rebates over present values. Thus, the legal threat caused the drop in broker commissions, reduced the illegal practice of cash rebates, increased competition by way of annuity rates, and raised the long-run elasticity to one."--World Bank web site.

Author : Edmund Cannon,Ian Tonks
Publisher : OUP Oxford
Page : 316 pages
File Size : 52,9 Mb
Release : 2008-10-02
Category : Business & Economics
ISBN : 9780191607592

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Annuity Markets by Edmund Cannon,Ian Tonks Pdf

The Pension Crisis concerns the changing demographic profile of the economy: an increasing number of elderly persons supported by fewer young people. Governments around the world are responding to this impending crisis by shifting their pension policies away from pay-as-you-go systems towards individual savings schemes. These savings need to be converted into a pension at retirement, and annuities provide this function. This book is a comprehensive study of annuity markets. The book starts by outlining the context of public policy towards pensions, and explains the different types of annuities available, focusing on the UK which has the largest annuity market in the world. It examines how annuities are priced, and describes the techniques of mortality measurement. As a background, it provides a history of annuities, and the experience of annuity markets in a number of other countries. The book outlines the economic theory behind annuities, and explains how annuities insure consumers against longevity risks. It goes on to describes how annuities markets function: how they work, and whether they are efficient, leading onto a discussion of the annuity puzzle. The book concludes by discussing the regulatory framework, assets available to back annuity liabilities, and recent developments in annuity markets.

Author : Estelle James,Dimitri Vittas
Publisher : World Bank Publications
Page : 42 pages
File Size : 50,5 Mb
Release : 2000
Category : Annuities
ISBN : 8210379456XXX

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Annuity Markets in Comparative Perspective by Estelle James,Dimitri Vittas Pdf

Preliminary result of a continuing research project that analyzes annuity markets in various countries. The projects focused on understanding whether annuity markets can be relied upon to provide reliable retirement income at reasonable prices.

Author : Robert Holzmann
Publisher : World Bank Publications
Page : 184 pages
File Size : 46,9 Mb
Release : 2009
Category : Business & Economics
ISBN : 9780821377321

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Aging Population, Pension Funds, and Financial Markets by Robert Holzmann Pdf

Population aging will affect the performance of pension funds and financial markets in the former transition economies and require determined policy actions to complete financial market development and to promote financial literacy through education.

Author : Gregorio Impavido
Publisher : World Bank Publications
Page : 47 pages
File Size : 40,7 Mb
Release : 2007
Category : Annuities
ISBN : 8210379456XXX

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The Mexican Pension Annuity Market by Gregorio Impavido Pdf

This paper analyzes the performance and development of the Mexican pension annuity market established as a consequence of the 1997 pension reform. The Mexican experience displays interesting characteristics providing lessons for other countries that still need to design the decumulation phase of their newly established second pillars. At the same, time it raises some technical and policy concerns that need addressing as they could hamper, in the future, the healthy development of the market. The paper concludes that: 1) general life insurance companies may better hedge longevity risk than specialized annuity companies; 2) competition should be based on prices rather than additional products; 3) better disclosure of options under the 1973 and 1997 social security laws should be given to disability and life annuitants; and 4) various measures should be taken to improve asset liability management including allowing companies to trade over the counter derivatives and substituting over time the regulatory asset liability management framework with an economic asset liability management framework.

Author : P. Desmond Brunton
Publisher : IDB
Page : 469 pages
File Size : 40,9 Mb
Release : 2005
Category : Pensions
ISBN : 9781931003773

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Workable Pension Systems by P. Desmond Brunton Pdf

"Based primarily on papers delivered at Pension Reform in English-Speaking Caribbean Countries : an International Symposium and Policy Seminar, which was held June 4-6, 2003, at the Caribbean Development Bank's Conference Centre in Wildey, St. Michael, Barbados"--Acknowledgments.

Author : Carolin A. Crabbe
Publisher : IDB
Page : 417 pages
File Size : 43,8 Mb
Release : 2005
Category : Social Science
ISBN : 9781597820202

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A Quarter Century of Pension Reform in Latin America and the Caribbean by Carolin A. Crabbe Pdf