Why do life insurance policyholders lapse? The roles of income, health, and bequest motive shocks

doi:10.1111/jori.12332

	Why do life insurance policyholders lapse? The roles of income, health, and bequest motive shocks
	Fang, Hanming1,2,3 ; Kung, Edward 4
	2021-12
发表期刊	JOURNAL OF RISK AND INSURANCE (IF:2.1[JCR-2023],1.8[5-Year])
ISSN	0022-4367
发表状态	已发表
DOI	10.1111/jori.12332
摘要	We present and empirically implement a dynamic discrete choice model of life insurance decisions to assess the importance of various factors in explaining life insurance lapsation. We estimate a model using information on life insurance holdings from the Health and Retirement Study. Counterfactual simulations using the estimates of our model suggest that a large fraction of life insurance lapsations are driven by idiosyncratic shocks, uncorrelated with health, income, and bequest motives, particularly when policyholders are relatively young. As the remaining policyholders get older, however, the role of such independent and identically distributed (i.i.d.) shocks gets smaller, and more of their lapsation is driven by income, health, or bequest motive shocks. As anticipated, income and health shocks are relatively more important than bequest motive shocks in explaining lapsation when policyholders are young, with bequest motive shocks playing a more important role as we age.
关键词	life insurance lapsations sequential Monte Carlo method
URL	查看原文
收录类别	SSCI
语种	英语
资助项目	National Science Foundation[SES-0844845]
WOS研究方向	Business & Economics
WOS类目	Business, Finance ; Economics
WOS记录号	WOS:000594077600001
出版者	WILEY
引用统计	正在获取...
文献类型	期刊论文
条目标识符	https://kms.shanghaitech.edu.cn/handle/2MSLDSTB/124703
专题	创业与管理学院_PI研究组_方汉明组
通讯作者	Fang, Hanming
作者单位	1.Univ Penn, Dept Econ, 133 S 36th St, Philadelphia, PA 19104 USA 2.ShanghaiTech Univ, Sch Entrepreneurship & Management, Shanghai, Peoples R China 3.NBER, Cambridge, MA 02138 USA 4.Calif State Univ Northridge, Dept Econ, Northridge, CA 91330 USA
第一作者单位	创业与管理学院
通讯作者单位	创业与管理学院
推荐引用方式 GB/T 7714	Fang, Hanming,Kung, Edward. Why do life insurance policyholders lapse? The roles of income, health, and bequest motive shocks[J]. JOURNAL OF RISK AND INSURANCE,2021.
APA	Fang, Hanming,&Kung, Edward.(2021).Why do life insurance policyholders lapse? The roles of income, health, and bequest motive shocks.JOURNAL OF RISK AND INSURANCE.
MLA	Fang, Hanming,et al."Why do life insurance policyholders lapse? The roles of income, health, and bequest motive shocks".JOURNAL OF RISK AND INSURANCE (2021).