Optimal Surrender Decision of Life Insurance Contract

• Main Authors: HUANG, WEN-PIN, 黃文彬
• Other Authors: 黃雅文
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/62641608072163575200

碩士 === 逢甲大學 === 風險管理與保險學系 === 105 === In this paper, we use an example for the current Taiwan life insurance contract to explore the optimal surrender decision of life insurance contract. This study builds an utility function for insureds who don’t want to pay the premiums. On the basis of surrender, lapse and reduced paid-up ratio to find the maximum utility value. We choose an optimal decision in every year of the policy. Then, we add sensitivity analysis to analyze utility value that change interest rate and risk avoidance parameters. The results show that every type, age and gender has the optimal decision. The increase of interest rate cause reduction in utility value rate and lead to shorten lapse time. Then we change risk avoidance parameters. When insureds are risk avoidance, chooseing reduced paid-up in term insurance and whole insurance. When γ = 0.1、γ = 0.05, we should choose surrender this decision. But the result is different with my expectation in endowment insurance. I think the repayment policy is the reason for this result.