An Insurer's Accountability for Variable Pension Annuity
The IUP Journal of Applied Economics, Vol. XI, No. 4, pp. 60-71, October 2012
Posted: 29 Nov 2012
Date Written: November 29, 2012
The purpose of this research is to investigate the insurer’s accountability effort associated with the sale of variable pension annuities. For the purpose of the study, a very simple model is built and two propositions are derived. The success probability of the investment exceeding a certain value is the necessary condition for selling the variable pension annuities. An increase in this success probability always increases the level of equilibrium pension premium, but not necessarily the level of equilibrium accountability effort.
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