A Study of The Determination and Stability of The Risk Coefficient for Life Insurance

• Main Authors: Chen Yan-Ling, 陳晏翎
• Other Authors: Chiou Jong-Rong
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/26172670211016997652

碩士 === 淡江大學 === 保險學系保險經營碩士班 === 90 === Given dramatic worldwide economic changes in the recent decades, Taiwan is scheduled to implement the risk-based capital system on July 9th, 2003. The purpose of this thesis is then to provide some suggestions before the enforcement of RBC. The focuses are as follow： 1.To estimate the risk coefficients for each related item. 2.To apply the estimated risk coefficient to individual life insurance company to see the adequacy of RBC. 3.To test the stability of the estimated risk coefficients. Major findings are as follow： 1.In general, the RBC ratios of local life insurance companies are lower than those of foreign life insurance companies. A possible explanation might be that that the local life insurance companies’ investment in risky assets such as stock, mutual fund and real estate, is higher than that of foreign life insurance companies. 2.The empirical evidences show that the estimated risk coefficient for 1999 and 2000 are stable. 3.The most risky item is stock, followed by mutual fund and real estate. As to fixed income investments such as bond and corporate bond, they are not as risky as items mentioned above. Finally, the risk associated with long-term life insurance is much higher than the short-term life insurance.