The Mexican Pension Annuity Market
This paper analyzes the performance and development of the Mexican pension annuity market established as a consequence of the 1997 pension reform. The Mexican experience displays interesting characteristics providing lessons for other countries tha...
| Main Author: | |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/05/7639190/mexican-pension-annuity-market http://hdl.handle.net/10986/7101 |
| id |
okr-10986-7101 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-71012021-04-23T14:02:33Z The Mexican Pension Annuity Market Impavido, Gregorio ACCUMULATED SAVINGS ACCUMULATION PERIOD ACCUMULATION RATE ACTUARIES AGENTS ANNUITIES ANNUITY ANNUITY MARKETS ANNUITY PROVIDERS ASSETS AUCTIONS BASIC PENSION BENEFICIARIES BENEFIT FORMULA BROKERS CENTRAL BANKS COMMISSIONS CREDIT RISK DEFINED BENEFIT SCHEMES DEFINED BENEFITS DEREGULATION DERIVATIVES EFFICIENT MARKET EQUITY INVESTMENT EXPECTED RETURN EXPECTED VALUE FAIR FINANCIAL ASSETS FINANCIAL SECTOR GDP GNP GOVERNMENT BONDS HOUSING INDIVIDUAL ACCOUNTS INFLATION INFLATION RISK INSURANCE BENEFITS INSURANCE INDUSTRY INSURANCE LAW INSURANCE PRODUCTS INSURERS INTEREST RATE INTEREST RATES INTERNATIONAL FINANCIAL INSTITUTIONS INVESTMENT PERFORMANCE LIFE INSURANCE LIFE INSURANCE COMPANIES LIQUIDITY LONGEVITY RISK LOSS RATIO MARKET CONCENTRATION MARKET INFORMATION MARKET PENETRATION MARKET POSITIONING MARKET SHARE MARKET STRUCTURE MORTALITY TABLES MUTUAL FUNDS NON-LIFE INSURANCE OLD AGE BENEFITS PENSION FUND PENSION FUND ADMINISTRATORS PENSION REFORM PENSION REFORMS PENSION RIGHTS PENSION SYSTEM PENSIONERS PENSIONS POLITICAL ECONOMY POTENTIAL DEMAND PREMIUMS PRICE INDEX PRICE VARIATION PRIVATE INSURANCE PRODUCT PRICING PROFIT MARGINS PROFITABILITY REAL INTEREST RATE REGULATORY FRAMEWORK REINSURANCE RESERVE RESERVES RETIREES RETIREMENT RETIREMENT BENEFITS RISK PREMIUM SALE SALES SAVINGS SECURITIES SOCIAL SECURITY SOLVENCY SPREAD STATISTICAL DATA STOCKS TRUSTS UNDERWRITING UNEMPLOYMENT VALUATION This paper analyzes the performance and development of the Mexican pension annuity market established as a consequence of the 1997 pension reform. The Mexican experience displays interesting characteristics providing lessons for other countries that still need to design the decumulation phase of their newly established second pillars. At the same, time it raises some technical and policy concerns that need addressing as they could hamper, in the future, the healthy development of the market. The paper concludes that: 1) general life insurance companies may better hedge longevity risk than specialized annuity companies; 2) competition should be based on prices rather than additional products; 3) better disclosure of options under the 1973 and 1997 social security laws should be given to disability and life annuitants; and 4) various measures should be taken to improve asset liability management including allowing companies to trade over the counter derivatives and substituting over time the regulatory asset liability management framework with an economic asset liability management framework. 2012-06-05T14:57:57Z 2012-06-05T14:57:57Z 2007-05 http://documents.worldbank.org/curated/en/2007/05/7639190/mexican-pension-annuity-market http://hdl.handle.net/10986/7101 English Policy Research Working Paper; No. 4236 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Mexico |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCUMULATED SAVINGS ACCUMULATION PERIOD ACCUMULATION RATE ACTUARIES AGENTS ANNUITIES ANNUITY ANNUITY MARKETS ANNUITY PROVIDERS ASSETS AUCTIONS BASIC PENSION BENEFICIARIES BENEFIT FORMULA BROKERS CENTRAL BANKS COMMISSIONS CREDIT RISK DEFINED BENEFIT SCHEMES DEFINED BENEFITS DEREGULATION DERIVATIVES EFFICIENT MARKET EQUITY INVESTMENT EXPECTED RETURN EXPECTED VALUE FAIR FINANCIAL ASSETS FINANCIAL SECTOR GDP GNP GOVERNMENT BONDS HOUSING INDIVIDUAL ACCOUNTS INFLATION INFLATION RISK INSURANCE BENEFITS INSURANCE INDUSTRY INSURANCE LAW INSURANCE PRODUCTS INSURERS INTEREST RATE INTEREST RATES INTERNATIONAL FINANCIAL INSTITUTIONS INVESTMENT PERFORMANCE LIFE INSURANCE LIFE INSURANCE COMPANIES LIQUIDITY LONGEVITY RISK LOSS RATIO MARKET CONCENTRATION MARKET INFORMATION MARKET PENETRATION MARKET POSITIONING MARKET SHARE MARKET STRUCTURE MORTALITY TABLES MUTUAL FUNDS NON-LIFE INSURANCE OLD AGE BENEFITS PENSION FUND PENSION FUND ADMINISTRATORS PENSION REFORM PENSION REFORMS PENSION RIGHTS PENSION SYSTEM PENSIONERS PENSIONS POLITICAL ECONOMY POTENTIAL DEMAND PREMIUMS PRICE INDEX PRICE VARIATION PRIVATE INSURANCE PRODUCT PRICING PROFIT MARGINS PROFITABILITY REAL INTEREST RATE REGULATORY FRAMEWORK REINSURANCE RESERVE RESERVES RETIREES RETIREMENT RETIREMENT BENEFITS RISK PREMIUM SALE SALES SAVINGS SECURITIES SOCIAL SECURITY SOLVENCY SPREAD STATISTICAL DATA STOCKS TRUSTS UNDERWRITING UNEMPLOYMENT VALUATION |
| spellingShingle |
ACCUMULATED SAVINGS ACCUMULATION PERIOD ACCUMULATION RATE ACTUARIES AGENTS ANNUITIES ANNUITY ANNUITY MARKETS ANNUITY PROVIDERS ASSETS AUCTIONS BASIC PENSION BENEFICIARIES BENEFIT FORMULA BROKERS CENTRAL BANKS COMMISSIONS CREDIT RISK DEFINED BENEFIT SCHEMES DEFINED BENEFITS DEREGULATION DERIVATIVES EFFICIENT MARKET EQUITY INVESTMENT EXPECTED RETURN EXPECTED VALUE FAIR FINANCIAL ASSETS FINANCIAL SECTOR GDP GNP GOVERNMENT BONDS HOUSING INDIVIDUAL ACCOUNTS INFLATION INFLATION RISK INSURANCE BENEFITS INSURANCE INDUSTRY INSURANCE LAW INSURANCE PRODUCTS INSURERS INTEREST RATE INTEREST RATES INTERNATIONAL FINANCIAL INSTITUTIONS INVESTMENT PERFORMANCE LIFE INSURANCE LIFE INSURANCE COMPANIES LIQUIDITY LONGEVITY RISK LOSS RATIO MARKET CONCENTRATION MARKET INFORMATION MARKET PENETRATION MARKET POSITIONING MARKET SHARE MARKET STRUCTURE MORTALITY TABLES MUTUAL FUNDS NON-LIFE INSURANCE OLD AGE BENEFITS PENSION FUND PENSION FUND ADMINISTRATORS PENSION REFORM PENSION REFORMS PENSION RIGHTS PENSION SYSTEM PENSIONERS PENSIONS POLITICAL ECONOMY POTENTIAL DEMAND PREMIUMS PRICE INDEX PRICE VARIATION PRIVATE INSURANCE PRODUCT PRICING PROFIT MARGINS PROFITABILITY REAL INTEREST RATE REGULATORY FRAMEWORK REINSURANCE RESERVE RESERVES RETIREES RETIREMENT RETIREMENT BENEFITS RISK PREMIUM SALE SALES SAVINGS SECURITIES SOCIAL SECURITY SOLVENCY SPREAD STATISTICAL DATA STOCKS TRUSTS UNDERWRITING UNEMPLOYMENT VALUATION Impavido, Gregorio The Mexican Pension Annuity Market |
| geographic_facet |
Latin America & Caribbean Mexico |
| relation |
Policy Research Working Paper; No. 4236 |
| description |
This paper analyzes the performance and
development of the Mexican pension annuity market
established as a consequence of the 1997 pension reform. The
Mexican experience displays interesting characteristics
providing lessons for other countries that still need to
design the decumulation phase of their newly established
second pillars. At the same, time it raises some technical
and policy concerns that need addressing as they could
hamper, in the future, the healthy development of the
market. The paper concludes that: 1) general life insurance
companies may better hedge longevity risk than specialized
annuity companies; 2) competition should be based on prices
rather than additional products; 3) better disclosure of
options under the 1973 and 1997 social security laws should
be given to disability and life annuitants; and 4) various
measures should be taken to improve asset liability
management including allowing companies to trade over the
counter derivatives and substituting over time the
regulatory asset liability management framework with an
economic asset liability management framework. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Impavido, Gregorio |
| author_facet |
Impavido, Gregorio |
| author_sort |
Impavido, Gregorio |
| title |
The Mexican Pension Annuity Market |
| title_short |
The Mexican Pension Annuity Market |
| title_full |
The Mexican Pension Annuity Market |
| title_fullStr |
The Mexican Pension Annuity Market |
| title_full_unstemmed |
The Mexican Pension Annuity Market |
| title_sort |
mexican pension annuity market |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2007/05/7639190/mexican-pension-annuity-market http://hdl.handle.net/10986/7101 |
| _version_ |
1764401915435679744 |