Seminar by Xiaohu Li

Relevation Transform Models of Joint Life Insurance

Statistical dependence was confirmed and modeled by using Gumbel and Frank copula in the literature of the joint life insurance. Recently, some scholars also detect the broken-heart effect in the empirical study of some real data sets. This talk reports on the relevation transform models, which successfully integrate the broken-heart effect into the joint lifetimes of an insured couple. Considering the dependence and broken-heart effect, the new model helps actuaries evaluate the insurance risk related to joint life policies in practice.