Structured Life Insurance Products: A Survey

Abstract

This paper gives an overview on the literature dealing with the pricing, risk management and product design of structured life insurance products (SLIPs), i.e. life insurance claims with an inherent financial risk. The payo of SLIPs is linked to an underlying risky investment strategy which cannot fall below some guaranteed amount. Additionally, innovative riders, the insured can decide on, reveal a new significance to the interaction between insurance company and policyholder.

Keywords: variable annuities, ratchet, reset, surrender, risk management

JEL Classification: G22