2021 SEP 21 (NewsRx) – By a Journalist-Staff News Editor at Daily Business Engineering – New research on Engineering – Financial Engineering is the subject of a report. According to information from Princeton, New Jersey, per NewsRx reporters, the research said: “Since the mid-1980s, the share of household net worth mediated by US financial institutions has shifted from defined benefit plans to life insurers and contribution plans. defined. Life insurers have developed primarily through variable annuities, which are mutual funds with longevity insurance, a potential tax benefit, and minimum return guarantees.
Financial support for this research includes National Science Foundation (NSF), Security Price Research Center to University of Chicago, Fama Research Fund to University of Chicago Booth School of Business.
Journalists obtained a citation for researching Princeton University, “Minimum return guarantees are changing the primary function of life insurers, moving from traditional insurance to financial engineering. Variable annuity insurers are exposed to mismatch of interest and equity risks, and their stock returns were particularly low during the COVID-19 crisis. “
According to reporters, the study concluded: “We are considering regulatory changes, such as more detailed financial disclosure and standardized stress tests, to monitor potential risk mismatches and ensure the stability of the insurance industry. .
This research has been peer reviewed.
For more information on this research, see: The Evolution of Life Insurance to Financial Engineering. The Geneva Risks and Insurance Review, 2021. The Geneva Risks and Insurance Review can be contacted at: Palgrave Macmillan Ltd., Brunel Road Building, Houndmills, Basingstoke RG21 6XS, Hants, England.
Our press correspondents point out that further information can be obtained by contacting Motohiro Yogo, Princeton University, Princeton, New Jersey 08544, United States.
The direct object identifier (DOI) for this additional information is: https://doi.org/10.1057/s10713-021-00068-1. This DOI is a link to an electronic document online that is free or to purchase, and can be your direct source for a journal article and its citation.
(Our reports provide factual information on research and discoveries from around the world.)
