Stock return uncertainty and life insurance
type: Item
instance of: scholarly article
title: Stock return uncertainty and life insurance
zbMATH Open document ID: 1459.91157
DOI: 10.1155/2020/1835146
author: Yang Dong
author: Hao Wang
author: Lihong Zhang
published in: Mathematical Problems in Engineering
publication date: 2020-07-23T00:00:00Z
review text: Summary: Knightian uncertainty embedded in stock returns causes rising demand for life insurance, as the uncertainty averse agent seeks alternative investment channels. Life insurance demand of middle-aged agent is more sensitive to the uncertainty. Stock return uncertainty reduces the agent's total wealth and subsequently the propensity of wealthy agent serving as an insurance seller. Rising demand and falling supply of life insurance imply that life insurance is more expensive in the presence of stock return uncertainty. Sensitivity of life insurance demand to the mortality rate and key stock return characteristics also changes with the uncertainty.
Mathematics Subject Classification ID: 91G05
Mathematics Subject Classification ID: 91G10
zbMATH DE Number: 7224343
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2020/1835146
OpenAlex ID: W3040704239
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description: scientific article; zbMATH DE number 7224343