Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/287182 
Year of Publication: 
2021
Citation: 
[Journal:] Financial Markets and Portfolio Management [ISSN:] 2373-8529 [Volume:] 35 [Issue:] 2 [Publisher:] Springer US [Place:] New York, NY [Year:] 2021 [Pages:] 193-224
Publisher: 
Springer US, New York, NY
Abstract: 
Dynamic hybrid products emerged in 2007 and are now well established in the German life insurance market. In this article, we study interaction effects between dynamic hybrid products and traditional deferred annuity contracts, that are sold by the same insurance company. The key question we investigate is whether the presence of dynamic hybrid products has a negative effect on the payout of traditional insurance products. We do so by using data drawn from a Monte Carlo simulation that is based on a model presented in this article. These data reveal that dynamic hybrid products reduce the payment to policyholders of traditional deferred annuities via the channel of surplus participation.
Subjects: 
Life insurance
Guaranteed interest rates
Dynamic hybrid
Constant proportion portfolio insurance
Customer value
DTH product
Insurance regulation
JEL: 
G18
G22
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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