Insurance contracts portfolios with heterogenous insured ages

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In this paper we consider two portfolios: one of m endowment insurance contracts and one of m whole life insurance contracts. We introduce the majorization order and Schur functions. We assume that the owners of the portfolios are of different ages at issue time and are exposed to a common life-distribution. We study the effect of the aging heterogeneity on the premiums and on the death benefits of the insurance contracts. We show that the premiums paid in both contracts and the death benefit awarded in the whole life contract are Schur functions. We provide upper and lower bounds for the premiums and for the death benefit, and compute the bounds for some distribution functions used frequently in the actuarial sciences.

Original languageEnglish
Pages (from-to)137-153
Number of pages17
JournalInsurance: Mathematics and Economics
Issue number1
StatePublished - 20 Aug 2004


  • Aging variability
  • Convex and concave functions
  • Endowment insurance
  • Force of mortality function
  • Majorization
  • Schur-convex and concave functions
  • Whole life insurance

ASJC Scopus subject areas

  • Statistics and Probability
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty


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