Journal article
Equivalence principle and Jewell’s inequality
European actuarial journal, Vol.11(2), pp.725-730
08/24/2021
DOI: 10.1007/s13385-021-00293-y
Abstract
In his address to the 21st International Congress of Actuaries, the late Professor William S. Jewell pointed out that, for a whole life insurance policy with level premiums payable continuously and a death benefit of constant amount payable at the moment of death, even though the equivalence principle stipulates that the insurer’s expected gain at issue is zero, the insurer’s expected gain at the moment of death of the insured is positive. This seemingly surprising result turns out to be true for more general life insurance policies. We present a simple derivation of and some elaboration on this fact.
Details
- Title: Subtitle
- Equivalence principle and Jewell’s inequality
- Creators
- Hans U Gerber - University of LausanneElias S. W Shiu - University of Iowa
- Resource Type
- Journal article
- Publication Details
- European actuarial journal, Vol.11(2), pp.725-730
- Publisher
- Springer Berlin Heidelberg
- DOI
- 10.1007/s13385-021-00293-y
- ISSN
- 2190-9733
- eISSN
- 2190-9741
- Language
- English
- Date published
- 08/24/2021
- Academic Unit
- Statistics and Actuarial Science
- Record Identifier
- 9984257617102771
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