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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