Leader: Domenico De Giovanni (UNICAL); Other collaborator(s): Mario Padula (UNIVE); Greta Falavigna (CNR)
Map firm-level integrated welfare related to longitudinal patterns of workers's careers and sectors of employment with particular attention to North/South inequalities. Assess the relevance and insurance value of the different models of integrated welfare also compared to the experience of other countries.
Brief description of the activities and of the intermediate results:
Ongoing work: mapping firm-level integrated welfare related to longitudinal patterns of workers’ careers and sectors of employment with particular attention to North/South inequalities. Assess the relevance and insurance value of the different models of integrated welfare also compared to the experience of other countries. Also, a second line of work studies the dependence structure of mortality in pensions funds, to better quantify and manage in the long- term the longevity risk.
Main policy, industrial and scientific implications
Annuities can be directed to single individuals or to couples (through widower’s pension or survivor’s pension). In the second case of couples, one important aspect is on the joint modeling mortality of partners. When doing so, it is important to take into account not only improvements of longevity, but also dependence, that is the correlation in mortality within the couple.
Brief description of the activities and of the intermediate results:
1. Focus on the design of policies and benefit provisions for old age. Preliminary estimates, based on individual-level data, show that inadequate local services push families to buy care, reducing family income and worsening poverty among low-income seniors.
2. "Integrated welfare" studies look at the welfare value of pension contracts that take account of the situation of couples. This requires computing and forecasting longevity improvements and mortality dependence within couples.
3. "Saving for Retirement" research looks at economic shocks and shows that effective insurance for old age should cover consumption expenditures, but also exceptional medical expenses.
Brief description of the activities and of the intermediate results:
A line of work, leveraging on administrative data, provides evidence on the individuals’ financial investment decisions in pension funds, identifying the sources of inequalities in the outcomes. A second line of work studies the dependence structure of mortality in pensions funds, to better quantify and manage in the long- term the longevity risk. A third line of work studies the dynamic structure of disability risk in order to plan for a system of integrated welfare that takes into account the future individual needs.
(i) Map firm-level integrated welfare related to longitudinal patterns of workers’ careers and sectors of employment with particular attention to North/South inequalities. Assess the relevance and insurance value of the different models of integrated welfare also compared to the experience of other countries.
(ii) Design new products of integrated welfare, capable of providing protection to a wide audience of people.
Brief description of the activities and of the intermediate results:
The team analyzed a Notional Defined Contribution structure that integrates long-term care and critical illness benefits into the pension system.
Main policy, industrial and scientific implications
Our findings have the following implications:
Brief description of the activities and of the intermediate results:
The team has focused on developing continuous-time single and multi-population mortality models exploiting the mathematical flexibility of polynomial diffusion processes.
Further, the team has designed a Notional Defined Contribution pension system providing incremental benefits in the event of disability onset during retirement or in the presence of serious illness (before or after retirement), thereby ensuring adequate benefits in the presence of increased care needs.
Main policy, industrial and scientific implications
Our findings have the following implications:
1) They guide resource allocation to improve support services for individuals with disabilities.
2) They help policymakers prioritize investments in preventative care, early interventions, and rehabilitation programs.
3)They allow for the development of targeted health initiatives aimed at reducing disparities and improving outcomes for vulnerable populations
4) Form a gender-based perspective, insurance products must be sensitive to these differences to ensure equitable treatment and access. For example, disability support programs could incorporate gender-specific considerations to address the unique challenges faced by men and women. Similarly, the design of insurance premiums and benefits can account for these disparities, offering more accurate and fair assessments of risk. It is important to note that in some jurisdictions, gender-based discrimination in insurance pricing is prohibited by law (e.g. in the European Union, the Council Directive 2004/113/EC, known as the Gender Directive, enforces the principle of equal treatment between men and women in accessing and supplying goods and services, explicitly including insurance).
5) Provide a reliable approach to anticipate future mortality/longevity trends, thus enabling governments to better plan welfare and social security policies ensuring efficient allocation of resources to support an ageing population.
6) Enable accurate pricing and risk management of insurance products embedding survival and death benefits through analytical solutions, thus increasing operational efficiency and allowing insurance companies to design innovative products.
Dissemination Events:
Scientific Outputs: