Publication:
An Empirical Analysis of the Annuity Rate in Chile

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dc.contributor.authorRocha, Roberto
dc.contributor.authorMorales, Marco
dc.contributor.authorThorburn, Craig
dc.date.accessioned2012-06-19T18:42:00Z
dc.date.available2012-06-19T18:42:00Z
dc.date.issued2006-06
dc.description.abstractEmpirical analyses of annuities markets have been limited to a few industrial countries and restricted by data limitations. Chile provides excellent conditions for research on annuities because of the depth of its market and the availability of data. The authors use a panel of life insurance company data to examine econometrically the main determinants of the annuity rate, defined as the internal rate of return on annuities. The results indicate that the annuity rate is determined by the risk-free interest rate, the share of privately-issued higher yield securities in the portfolio of providers as a proxy for the spread over the risk-free rate, the leverage of providers, the level of broker's commissions, the market share of individual providers, the level of the premium, and the degree of market competition. The results also show that efforts to improve market transparency produced structural shifts in the parameters of the annuity rate equation. The results are consistent with separate research on money's worth ratios, and indicate the need to develop appropriate financial instruments, allowing providers to hedge their risks while extracting higher returns, and also to ensure competition and transparency in annuities markets, in order to ensure good outcomes for annuitants.en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/06/6822636/empirical-analysis-annuity-rate-chile
dc.identifier.doi10.1596/1813-9450-3929
dc.identifier.urihttps://hdl.handle.net/10986/8456
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 3929
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADVERSE SELECTION
dc.subjectAGENTS
dc.subjectAGGREGATE DEMAND
dc.subjectAGGREGATE SUPPLY
dc.subjectANNUITIES
dc.subjectANNUITIES MARKETS
dc.subjectANNUITY
dc.subjectANNUITY MARKETS
dc.subjectANNUITY PROVIDERS
dc.subjectANNUITY RATE
dc.subjectANNUITY RATES
dc.subjectASSETS
dc.subjectAVERAGE COSTS
dc.subjectBANKRUPTCY
dc.subjectBROKERS
dc.subjectCAPITAL MARKETS
dc.subjectCENTRAL BANK
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMMISSIONS
dc.subjectCONSUMERS
dc.subjectCREDIT RISK
dc.subjectDEMAND CURVE
dc.subjectDISCLOSURE
dc.subjectDISCLOSURE RULES
dc.subjectECONOMETRIC ANALYSIS
dc.subjectECONOMIES OF SCALE
dc.subjectEXPECTED PRESENT VALUE
dc.subjectEXPECTED RETURNS
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFINANCIAL SECTOR
dc.subjectFIXED ANNUITIES
dc.subjectFIXED INCOME
dc.subjectGDP
dc.subjectGOVERNMENT BONDS
dc.subjectINDEXED BONDS
dc.subjectINSURANCE COMPANY
dc.subjectINSURANCE INDUSTRY
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNAL RATE OF RETURN
dc.subjectLIFE ANNUITIES
dc.subjectLIFE EXPECTANCY
dc.subjectLIFE INSURANCE
dc.subjectLIFE INSURANCE COMPANIES
dc.subjectLIQUIDITY
dc.subjectLONGEVITY RISKS
dc.subjectMACROECONOMIC CONDITIONS
dc.subjectMARKET RISK
dc.subjectMONOPOLY
dc.subjectMORTALITY TABLES
dc.subjectMORTGAGES
dc.subjectNORMAL RETIREMENT AGE
dc.subjectOPPORTUNITY COST
dc.subjectPAYOUT
dc.subjectPENSION FUND
dc.subjectPENSION FUND ADMINISTRATORS
dc.subjectPENSION LAW
dc.subjectPENSION REFORM
dc.subjectPENSION REFORMS
dc.subjectPENSION SAVINGS
dc.subjectPENSION SYSTEM
dc.subjectPENSIONERS
dc.subjectPENSIONS
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO COMPOSITION
dc.subjectPORTFOLIO RETURN
dc.subjectPORTFOLIO RETURNS
dc.subjectPORTFOLIOS
dc.subjectPREMIUMS
dc.subjectPRIVATE PENSION
dc.subjectPRIVATE PENSION FUNDS
dc.subjectPRIVATE PENSION SYSTEMS
dc.subjectPRIVATE PILLARS
dc.subjectPROFIT MARGINS
dc.subjectPROFIT MAXIMIZATION
dc.subjectRATES OF RETURN
dc.subjectREINVESTMENT RISK
dc.subjectRESERVES
dc.subjectRETIREES
dc.subjectRETIREMENT
dc.subjectRETIREMENT INCOME
dc.subjectRISK AVERSION
dc.subjectRISK PREMIUM
dc.subjectRISK-FREE RATE
dc.subjectROA
dc.subjectSAVINGS
dc.subjectSECURITIES
dc.subjectSTATEMENTS
dc.subjectSTRUCTURAL CHANGE
dc.subjectSUBSTITUTION EFFECT
dc.subjectSUPERVISORY AGENCY
dc.subjectTRANSPARENCY
dc.subjectTREASURY BONDS
dc.subjectUNDERWRITING
dc.subjectVALUATION
dc.subjectWAGES
dc.subjectWEALTH
dc.titleAn Empirical Analysis of the Annuity Rate in Chileen
dspace.entity.typePublication
okr.crossref.titleAn Empirical Analysis Of The Annuity Rate In Chile
okr.date.doiregistration2025-04-10T09:25:07.553641Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2006/06/6822636/empirical-analysis-annuity-rate-chile
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeFinance and Markets
okr.guid972391468236081806
okr.identifier.doi10.1596/1813-9450-3929
okr.identifier.externaldocumentum000016406_20060530155249
okr.identifier.internaldocumentum6822636
okr.identifier.reportWPS3929
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/05/30/000016406_20060530155249/Rendered/PDF/wps3929.pdfen
okr.region.administrativeLatin America and Caribbean
okr.region.countryChile
okr.topicFinance and Financial Sector Development::Non Bank Financial Institutions
okr.topicEconomic Theory and Research
okr.topicInsurance and Risk Mitigation
okr.topicPensions and Retirement Systems
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicSocial Protections and Labor
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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