Developing Annuities Markets The Experience of Chile

Thorburn, Craig, Rocha, Roberto Rezende

Responsive image
Thorburn, Craig, Rocha, Roberto Rezende
9,19 MB


Developing Annuities Markets: The Experience of Chile is part of a multicountry World Bank project analyzing the market for retirement products. Among countries that have reformed their pension systems since the early 1990s, the Chilean case has emerged as the most relevant for drawing policy lessons on the role of the private sector in the provision of retirement income for two reasons: the depth, sophistication, and efficiency of the country's retirement products market, and the fact that this market was successfully developed from scratch by a middle-income country. The book examines in detail Chile's efforts to build a sound regulatory framework for the payout phase, concluding that a market for annuities and other retirement instruments can be built from a low base, while also identifying the reform agenda that policy makers need to implement to maximize benefits for their retiring populations. QUOTEThis book provides a rigorous analysis, supported by a careful data examination, of the annuity market in Chile. It should be a must-read for policy makers involved in pension reforms.QUOTE Solange Bernstein, Director, Superintendency of Pension Funds, Chile QUOTEThis volume offers a fascinating in-depth study of the Chilean annuity marketplace, a topic of direct interest to developing and developed nations as they prepare to design and regulate financial markets for the decumulation phase of life.QUOTE Olivia S. Mitchell, Executive Director, Pension Research Council, The Wharton SchoolThorburn, Craig is the author of 'Developing Annuities Markets The Experience of Chile', published 2006 under ISBN 9780821366660 and ISBN 0821366661.

...owth is supported by A) import substitution ... Developing annuities markets : the experience of Chile ... ... . B) industrialization policies. C) trade liberalization policies. D) intra-industry trading. E) trade embargoes. annuities markets in other countries. However, early retirees and normal age retirees tend to make different choices. The normal retirement age is 65 for men and 60 for women, but many workers have met the preconditions to retire at an earlier age. (Early retirement means that they start w ... A Summary And Update Of Developing Annuities Markets : The ... ... . (Early retirement means that they start withdrawing and may stop contributing; it does not necessarily mean that they stop working.) Currently 60 ... Derivative market: the experience of Chile Luis A Opazo R1 1. Introduction The derivatives market has shown a significant development in recent years. According to ISDA, the industry has grown around 340% in the period 2002-2009. Chile is not the exception; the domestic market has also registered a significant growth, which has been focused mainly on currency derivatives. Indeed, the current ... POLICY ISSUES FOR DEVELOPING ANNUITIES MARKETS F. Stewart1 I. Introduction 1. After an initial discussion of longevity and ageing issues in the previous Insurance and Private Pensions Committee meeting, it was decided to return to these important topics and to look at policy implications in more detail. Annuities2 are specifically designed to cover the risk that an individual outlives their ... Finding the best path to lead Chile toward economic development has been a continuous task of Chilean governments and leaders during the last century. The mission of building a society of ... Developing Annuity Markets in Latin America Annuity Provider Mandatory schemes Country Life insurance Co. Specialized insurance Co. Pension fund assets (% GDP) Life annuity assets ( % GDP) Chile 60% 13% Colombia 20% 0.7% Peru 18% 0.4% Mexico Voluntary Mandatory 12% 1.1% Source: SSV, SP, SBS, CNSF, CONSAR,SF The conventional form of annuity, notably in Anglo Saxon countries, is a nominal-fixed contract, but in countries where inflation indexed bonds are available, such as the UK and Chile there can be real annuities. Variants on these basic annuities are available in some markets, such as survivor annuities, The "Miracle of Chile" was a term used by economist Milton Friedman to describe the reorientation of the Chilean economy in the 1980s and the effects of the economic policies applied by a large group of Chilean economists who collectively came to be known as the Chicago Boys, having studied at the University of Chicago where Friedman taught.He said the "Chilean economy did very well, but more ... facilitate the development of a market for individual annuities. However, experience from the UK suggests that most workers do not exercise this option or are even aware of it. Table 1: Size of Annuity and life insurance markets in India 1996 97 98 99 2000 Annuities-new business Premiums (lakhs of Rs) 183 14494 4893 9789 17262...