Managing policy lapse risk in Sweden's life insurance market between 1915 and 1947

Michael Adams, Lars Fredrik Andersson, Liselotte Eriksson, Magnus Lindmark, Elena Veprauskaite

Research output: Contribution to journalArticle

Abstract

We examine the challenges that Swedish life insurers faced in managing the lapse risk of policies written on the lives of the industrial urban working-class between 1915 and 1947. We observe that with the threat of State socialization of insurance in the 1930s, industrial life insurers modified their business practices to better control policy lapses. Using firm-level data, we also analyze the effect of socio-economic changes, such as rising real wages, interest rate fluctuations and unemployment on life insurance policy lapses. Our results support contemporary tests of the emergency fund and interest rate explanations for the voluntary premature termination of life insurance policies.
LanguageEnglish
JournalBusiness History
Early online date22 Feb 2018
DOIs
StatusE-pub ahead of print - 22 Feb 2018

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Life insurance
Sweden
Insurance market
Insurance
Lapse
Insurer
Interest rates
Interest Rates
Termination
Emergency
Firm-level data
Threat
Unemployment
Socio-economics
Socialization
Fluctuations
Working class
Economic change
Business practices
Real wages

Cite this

Adams, M., Andersson, L. F., Eriksson, L., Lindmark, M., & Veprauskaite, E. (2018). Managing policy lapse risk in Sweden's life insurance market between 1915 and 1947. DOI: 10.1080/00076791.2017.1418331

Managing policy lapse risk in Sweden's life insurance market between 1915 and 1947. / Adams, Michael; Andersson, Lars Fredrik; Eriksson, Liselotte ; Lindmark, Magnus; Veprauskaite, Elena.

In: Business History, 22.02.2018.

Research output: Contribution to journalArticle

Adams M, Andersson LF, Eriksson L, Lindmark M, Veprauskaite E. Managing policy lapse risk in Sweden's life insurance market between 1915 and 1947. Business History. 2018 Feb 22. Available from, DOI: 10.1080/00076791.2017.1418331
Adams, Michael ; Andersson, Lars Fredrik ; Eriksson, Liselotte ; Lindmark, Magnus ; Veprauskaite, Elena. / Managing policy lapse risk in Sweden's life insurance market between 1915 and 1947. In: Business History. 2018
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