Study Of The Pricing Method Of Life Insurance Products Based On The Principle Of Individual Equity

The insurance play a potential role on the national economy, it is not only to the security and risk prevention role in many aspects of society, the most important is that the social insurance fund plays a huge role in the huge economic losses ,on the other hand, the social insurance funds also play an important role in the development of the overall economy through investment.The key problem for the survival and development of life insurance companies is how to make a reasonable pricing of life insurance products.The relationship between insurance and finance is becoming more and more closely,the using of insurance funds is no longer limited to bank deposits,also began to invest in financial products,insurance companies in order to improve their competitiveness,they will start operating mode from the“underwriting profit to operating profit",so a reasonable premium and reasonable investment becomes the key the problem of insurance industry.In addition, there are some differences between the pricing of life insurance and the pricing of general merchandise,Life insurance pricing needs to consider market demand, but also need to consider the premium charged in the end of the policy to meet the company's operating profit and payment expenses.Therefore, setting up a fair and reasonable premium and making a deep research on the theory of life insurance pricing have a great significance to the development of the life insurance industry.This paper uses the theory of backward stochastic differential equations, the insured and the insurer in the same system are considered,Establish a life insurance pricing model witch based on the principle of individual equity, The main work is as follows :(1 )Based on the theory of backward stochastic differential equation,According to the target of the policy holder's investment decision, this paper establishes the non arbitrage life insurance pricing model ,at the same time, according to the target of the insurer's investment decision,this paper establishes the asset share pricing model.(2) According to the explicit solution of a special kind of linear back-ward stoochastic differential equation, we obtain the life insurance pricing formula and the investment strategy at the beginning of the period,Increasing individual equity pricing conditions,establishing individual fair pricing conditions.(3)Analysis of mortality factors, using L-C model to predict the mortality ofdifferent age and gender.(4)Put forward policy recommendations based on empirical results.Through the analysis, we can find that the premium based on the investment life insurance pricing model not only takes into account the expected return of life insurance companies, but also gives the optimal investment strategy,The life insurance product developed by the pricing method can adapt to the increasingly competitive life insurance market.