Policyholder exercise behavior in life insurance : the state of affairs

Daniel BAUER*, Jin GAO, Thorsten MOENIG, Eric R. ULM, Nan ZHU

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)peer-review

27 Citations (Scopus)

Abstract

The article presents a review of structural models of policyholder behavior in life insurance. We first discuss underlying drivers of policyholder behavior in theory and survey the implications of different models. We then turn to empirical behavior and appraise how well different drivers explain observations. The key contributions lie in the synthesis and the systematic categorization of different approaches. The article should provide a foundation for future studies, and we describe some important directions for future research in the conclusion.
Original languageEnglish
Pages (from-to)485-501
Number of pages17
JournalNorth American Actuarial Journal
Volume21
Issue number4
Early online date28 Sept 2017
DOIs
Publication statusPublished - 2017

Bibliographical note

This article concludes our research under the Society of Actuaries’ (SOA) Center of Actuarial Excellence (CAE) Research Grant “Structural Models of Policyholder Behavior.” We are grateful to the SOA for the financial support.

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