Public lecture with Ralph Koijen, NYU, Stern School of Business

In connection with the PhD Nordic Finance Workshop, the FRIC Center and the Department of Finance would like to invite you to attend the keynote talk with Ralph Koijen, New York University, Stern School of Business

Ralph Koijen will present:
The Fragility of Market Risk Insurance

ABSTRACT
Insurers sell retail financial products called variable annuities that package mutual funds with minimum return guarantees over long horizons.  Variable annuities
accounted for $1.5 trillion or 34 percent of U.S. life insurer liabilities in 2015. Sales fell and fees increased after the 2008 financial crisis as the higher valuation of existing liabilities stressed risk-based capital. Insurers also made guarantees less generous or stopped offering guarantees entirely to reduce risk exposure. We develop a supply-driven theory of insurance markets in which financial frictions and market power determine pricing, contract characteristics, and the degree of market incompleteness.

See the full paper here: The Fragility of Market Risk Insurance.pdf

No registration is necessary, but please note that this invitation only concerns the keynote talk with Ralph Koijen and not the rest of the PhD Nordic Finance Workshop program.


Time and Place
May 30, 2017
Time: 17:00 - 18:00
Place: SPs07