Self-selection and risk sharing in a modern world of lifelong annuities - Abstract of the London Discussion

This abstract relates to the following paper: Gerrard, R., Hiabu, M., Kyriakou, I. and Nielsen, J. P. (2018) Self-selection and risk sharing in a modern world of lifelong annuities ‐ Abstract of the London Discussion. British Actuarial Journal. Cambridge University Press, 23. doi: 10.1017/S135732171800020X

Self-selection and risk sharing in a modern world of life-long annuities

Communicating a pension product well is as important as optimising the financial value. In a recent study, we showed that up to 80% of the value of a pension lump sum could be lost if customer communication failed. In this paper, we extend the simple customer interaction of the earlier contribution to the more challenging lifetime annuity case. Using a simple mobile phone device, the pension customer can select the life-long optimal investment strategy within minutes. The financial risk trade-off is presented as a trade-off between the pension paid and the number of years the life-long annuity is guaranteed. The pension payment decreases when investment security increases. The necessary underlying mathematical financial hedging theory is included in the stud

Long-run savings and investment strategy optimization

We focus on automatic strategies to optimize life cycle savings and investment. Classical optimal savings theory establishes that, given the level of risk aversion, a saver would keep the same relative amount invested in risky assets at any given time. We show that, when optimizing lifecycle investment, performance and risk assessment have to take into account the investor's risk aversion and the maximum amount the investor could lose, simultaneously. When risk aversion and maximum possible loss are considered jointly, an optimal savings strategy is obtained, which follows from constant rather than relative absolute risk aversion. This result is fundamental to prove that if risk aversion and the maximum possible loss are both high, then holding a constant amount invested in the risky asset is optimal for a standard lifetime saving/pension process and outperforms some other simple strategies. Performance comparisons are based on downside risk-adjusted equivalence that is used in our illustration

Transverse Shifts in Paraxial Spinoptics

The paraxial approximation of a classical spinning photon is shown to yield an "exotic particle" in the plane transverse to the propagation. The previously proposed and observed position shift between media with different refractive indices is modified when the interface is curved, and there also appears a novel, momentum [direction] shift. The laws of thin lenses are modified accordingly.Comment: 3 pages, no figures. One detail clarified, some misprints corrected and references adde

Growth-promoting activity of desmopressin in murine leukemia cells treated in vitro

The synthetic vasopressin analogue, desmopressin (dDAVP), has been shown to influence membrane transport of melphalan in murine L5178Y lymphoblasts. Accordingly, the effect of dDAVP on the cytocidal activity of melphalan in L5178Y cells was evaluated. dDAVP did not affect the cytocidal activity of melphalan in these cells, but significantly affected the cloning efficiency of stationary phase or slowly dividing L5178Y cells over a range of concentrations. In particular, stationary phase cells showed an increase in cloning efficiency from 4.3 ± 0.5% in control cells to 7.0 ± 0.3% in cells treated with 25 nM dDAVP (P < 0.001), whereas cells doubling every 26 h showed an increase from 10.8 ± 1.2% in control cells to 21.0 ± 2.0% in cells treated with 150 nM dDAVP (P < 0.001). This phenomenon was associated with significant elevations of 1,2[3H] diacylglycerol after incubation with dDAVP for 9 min (P < 0.01) and total [3H]diacylglycerols after incubation for both 3 min (P < 0.05) and 9 min (P < 0.02). Within 10 s of treatment with 100 nM dDAVP, there was a marked decrease in the levels of inositol 1,4,5-trisphosphate and inositol 1-phosphate, but subsequently no change was observed for up to 9 min after treatment. We postulate that the increase of diacylglycerol content produced by dDAVP might be primarily from a phosphatidylcholine source and that the growth-promoting activity of desmopressin may be a consequence of activation of protein kinase C

Oxygen ion dynamics in the Earth's ring current: Van Allen probes observations

Oxygen (O+) enhancements in the inner magnetosphere are often observed during geomagnetically active times, such as geomagnetic storms. In this study, we quantitatively examine the difference in ring current dynamics with and without a substantial O+ ion population based on almost 6 years of Van Allen Probes observations. Our results have not only confirmed previous finding of the role of O+ ions to the ring current but also found that abundant O+ ions are always present during large storms when sym-H < -60 nT without exception, whilst having the pressure ratio () between O+ and proton (H+) larger than 0.8 and occasionally even larger than 1 when L < 3. Simultaneously, the pressure anisotropy decreases with decreasing sym-H and increasing L shell. The pressure anisotropy decrease during the storm main phase is likely related to the pitch angle isotropization processes. In addition, we find that increases during the storm main phase and then decreases during the storm recovery phase, suggesting faster buildup and decay of O+ pressure compared to H+ ions, which are probably associated with some species dependent source and/or energization as well as loss processes in the inner magnetosphere.Accepted manuscrip

Large Scale Proactive Power-Quality Monitoring: An Example from Australia

In Australia and many other countries, distribution network service providers (DNSPs) have an obligation to their customers to provide electrical power that is reliable and of high quality. Failure to do so may have significant implications ranging from financial penalties theoretically through to the loss of a license to distribute electricity. In order to ensure the reliability and quality of supply are met, DNSPs engage in monitoring and reporting practice. This paper provides an overview of a large long-running power-quality monitoring project that has involved most of Australia\u27s DNSPs at one time or another. This paper describes the challenges associated with conducting the project as well as some of the important outcomes and lessons learned. A number of novel reporting techniques that have been developed as part of the monitoring project are also presented. A discussion about large-volume data management, and issues related to reporting requirements in future distribution networks is included