Publication:
Annuity Markets in Chile : Competition, Regulation - and Myopia?

dc.contributor.author Walker, Eduardo
dc.date.accessioned 2012-06-18T22:10:18Z
dc.date.available 2012-06-18T22:10:18Z
dc.date.issued 2006-08
dc.description.abstract The author studies annuity rates in Chile and relates them with industry competition. He finds (1) that annuity insurance companies paying higher broker commissions paid lower annuity rates; and (2) a structural break of the long-run elasticity of annuity rates to the risk-free rate in 2001. Moreover, this structural break coincided with the submission of a new draft pension law proposing greater transparency in annuity markets and a generalized drop in broker commissions. The high commissions charged in the 1990s were partly returned to annuitants as informal (and illegal) cash rebates. Myopic pensioners preferred cash rebates over present values. Thus, the legal threat caused the drop in broker commissions, reduced the illegal practice of cash rebates, increased competition by way of annuity rates, and raised the long-run elasticity to one. en
dc.identifier http://documents.worldbank.org/curated/en/2006/08/6940919/annuity-markets-chile-competition-regulation-myopia
dc.identifier.uri http://hdl.handle.net/10986/8381
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper; No. 3972
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject AGENCY PROBLEMS
dc.subject AGENTS
dc.subject ANNUITIES
dc.subject ANNUITIES MARKETS
dc.subject ANNUITY
dc.subject ANNUITY MARKETS
dc.subject ANNUITY PAYMENT
dc.subject ANNUITY RATE
dc.subject ANNUITY RATES
dc.subject ASSETS
dc.subject AUCTION
dc.subject AUCTIONS
dc.subject BANKRUPTCY
dc.subject BENEFICIARIES
dc.subject BOLSA
dc.subject BONDS
dc.subject BROKERS
dc.subject CAPITAL MARKETS
dc.subject CENTRAL BANK
dc.subject COMMISSIONS
dc.subject CONSUMERS
dc.subject COST OF CAPITAL
dc.subject CREDIT RISK
dc.subject DEBT
dc.subject DISCOUNT RATES
dc.subject ELASTICITY
dc.subject EMERGING MARKETS
dc.subject FINANCIAL INSTRUMENTS
dc.subject FUTURE PAYMENTS
dc.subject INDEXED BONDS
dc.subject INFLATION
dc.subject INFLATION RATE
dc.subject INSURANCE
dc.subject INSURANCE COMPANIES
dc.subject INSURANCE COMPANY
dc.subject INSURANCE INDUSTRY
dc.subject INTEREST RATE
dc.subject INTEREST RATES
dc.subject INTERNAL RATE OF RETURN
dc.subject INVESTMENT POLICIES
dc.subject INVESTMENT RISK
dc.subject INVESTMENT STRATEGIES
dc.subject LIFE EXPECTANCY
dc.subject LIFE INSURANCE
dc.subject LIFE INSURANCE COMPANIES
dc.subject LONGEVITY INSURANCE
dc.subject LONGEVITY RISK
dc.subject MANDATORY SAVINGS
dc.subject MANDATORY SYSTEM
dc.subject MARGINAL COST
dc.subject MARKET RISK
dc.subject MORTALITY TABLES
dc.subject PAYOUT
dc.subject PENSION FUND
dc.subject PENSION FUND ADMINISTRATORS
dc.subject PENSION FUNDS
dc.subject PENSION LAW
dc.subject PENSION SYSTEM
dc.subject PENSION SYSTEMS
dc.subject PENSIONERS
dc.subject PENSIONS
dc.subject PORTFOLIOS
dc.subject PREMIUMS
dc.subject PRIVATIZATION
dc.subject RATES
dc.subject RATES OF RETURN
dc.subject REAL INTEREST RATE
dc.subject RETIREES
dc.subject RETIREMENT
dc.subject RETIREMENT AGE
dc.subject RISK PREMIUM
dc.subject RISK-FREE RATE
dc.subject SAVINGS
dc.subject SECURITIES
dc.subject SOCIAL SECURITY
dc.subject STATEMENTS
dc.subject STRUCTURAL CHANGE
dc.subject TRANSPARENCY
dc.subject UNDERESTIMATES
dc.subject VALUATION
dc.subject VARIABLE ANNUITIES
dc.subject WEALTH
dc.subject YIELD CURVES
dc.title Annuity Markets in Chile : Competition, Regulation - and Myopia? en
dspace.entity.type Publication
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2006/08/6940919/annuity-markets-chile-competition-regulation-myopia
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Social Protection and Labor
okr.globalpractice Finance and Markets
okr.identifier.doi 10.1596/1813-9450-3972
okr.identifier.externaldocumentum 000016406_20060721143736
okr.identifier.internaldocumentum 6940919
okr.identifier.report WPS3972
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/07/21/000016406_20060721143736/Rendered/PDF/wps3972.pdf en
okr.region.administrative Latin America & Caribbean
okr.region.country Chile
okr.topic Finance and Financial Sector Development :: Non Bank Financial Institutions
okr.topic Economic Theory and Research
okr.topic Pensions and Retirement Systems
okr.topic Insurance and Risk Mitigation
okr.topic Macroeconomics and Economic Growth :: Investment and Investment Climate
okr.topic Social Protections and Labor
okr.unit Development Research Group (DECRG)
okr.volume 1 of 1
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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