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The Secondary Market for Life Insurance in the United Kingdom, Germany, and the United States: Comparison and Overview
Author(s) -
Gatzert Nadine
Publication year - 2010
Publication title -
risk management and insurance review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.386
H-Index - 16
eISSN - 1540-6296
pISSN - 1098-1616
DOI - 10.1111/j.1540-6296.2010.01187.x
Subject(s) - market microstructure , capital market , factor market , primary market , business , secondary market , nonmarket forces , market analysis , economics , finance , market economy , order (exchange) , marketing , stock market , geography , context (archaeology) , archaeology , stock exchange
In this article, we identify key characteristics and implications of the secondary market for life insurance. We examine the oldest secondary market, which is the market in the United Kingdom, the relatively young market in Germany, and the controversial U.S. market. We summarize the available data to describe the current market situation and market potential, which strongly depend on developments in the primary markets and capital markets, as well as on regulatory and legal aspects. Next, we discuss benefits and risks associated with a secondary market, which depend on each market's unique features. The three markets considered in this article are fundamentally different, and the comparative assessment is intended to offer insight into their functioning and key factors.