Longevity insurance markets and Money's worth ratios in Korea

Content Provider	Scilit
Author	Lee, Kyonghee
Copyright Year	2013
Description	The rare annuitization, thin immediate annuity market, and date limitation have prevented the attempts to analyze the longevity insurance market in Korea. The purpose of this paper is to examine the relative value of Korean annuity rates to theoretical ones and to provide a new evidence on the function of the voluntary annuity market in terms of the money's worth ratio (MWR). Our results show that the immediate annuity market in Korea is reasonably efficient. For example, the money's worth ratio of an immediate annuity of a 10-year guarantee period for a 65-year-old male is estimated to be about 0.8 with the general population mortality rate, while it improves to 0.9 with the annuitant mortality table. Average MWR is similar to that of other countries with thin annuity market, which show that annuitants in Korea pay a comparable cost to that in other countries.
Related Links	https://www.cambridge.org/core/services/aop-cambridge-core/content/view/257B5EEBC7F462B936BDB35EE32BB786/S1474747213000085a.pdf/div-class-title-longevity-insurance-markets-and-money-s-worth-ratios-in-korea-a-href-fns01-ref-type-fn-a-div.pdf
Ending Page	454
Page Count	20
Starting Page	435
ISSN	14747472
e-ISSN	14753022
DOI	10.1017/s1474747213000085
Journal	Journal of Pension Economics and Finance
Issue Number	4
Volume Number	12
Language	English
Publisher	Cambridge University Press (CUP)
Publisher Date	2013-10-01
Access Restriction	Open
Subject Keyword	Journal of Pension Economics and Finance Agricultural Economics Korean Annuity Market Money's Worth Ratios
Content Type	Text
Resource Type	Article
Subject	Finance Economics and Econometrics Organizational Behavior and Human Resource Management