Skip to main content
Disciplines
Automotive Business IT + Informatics Construction + Real Estate Electrical Engineering + Electronics Energy + Sustainability Insurance + Risk Finance + Banking Management + Leadership Marketing + Sales Mechanical Engineering + Materials
Events
DE
EN
Books
Journals
Topic Page
Marketing
Start single access now
Access for companies
EXTENDED SEARCH
Log in
Top
Zeitschrift für die gesamte Versicherungswissenschaft
Published in: Zeitschrift für die gesamte Versicherungswissenschaft 3/2018

08-10-2018 | Abhandlung

Portfolio structure of the German households and the role of insurance and pension entitlements

Authors: T. Schmidt, T. Linderkamp, A. Zuchandke

Published in: Zeitschrift für die gesamte Versicherungswissenschaft | Issue 3/2018

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

This paper examines the wealth structure of German households from 1975 to 2014 with special reference to the asset class insurance and pension entitlements. Therefore we use a unique dataset of Deutsche Bundesbank and apply a Financial Almost Ideal Demand System (FAIDS). We find a nearly proportional reaction of the insurance share to changes in the total wealth level, but no significant impact of the insurance return to the asset class. Therefore we conclude that security and not return optimization is the main demand motive for the asset class insurance and pension entitlements. Finally, we find a positive relation between the share of the elderly in Germany and the insurance share in the portfolio.
previous article Digital insurance brokers—old wine in new bottles? How digital brokers create value
next article Ronny Rudi Richter: Strafvereitelung wegen Nichtanzeige von Straftaten nach Prüfungen durch die Stellen zur Bekämpfung von Fehlverhalten im Gesundheitswesen

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now
Appendix
Available only for authorised users
Footnotes
1
In the sense of Walras law.
 
2
Weichert and Zeitz (1986, p. 12).
 
3
For this duality approach, see Conrad (1980). He applies the duality approach to answer a similar question, namely the allocation of assets and liabilities of the West-German Private Non-Bank Sector.
 
4
A residual equation is necessary in a FAIDS framework, see in particular chap. 3.
 
5
Like Ramb and Scharnagl (2011). All data is broken down according to the European System of National and Regional Accounts (ESA) ’95, see Ramb and Scharnagl (2011, p. 15). For a description of the asset classes according to ESA 95 see Deutsche Bundesbank (2004) and (2008).
 
6
Due to changes from ESA 1995 to ESA 2010 in 2014 it is not possible to use the data up to the current period.
 
7
To transform the data we set the start value of January, April, July and October as the corresponding quarterly data, because investments decisions of private households should be based on the current return level and not on the end value of a quarter for example.
 
8
The R2 of the regression is 0.9996.
 
9
The main reason for the lack of availability is the new definition of the asset class saving deposits. The Deutsche Bundesbank states that the definitions are “only very limited comparable” (Deutsche Bundesbank 2004, p. 47).
 
10
We use exponential smoothing to extrapolate the time series.
 
11
In contrast to the straight return the often used net return is calculated as the average of the start and end value of one year considering also the extraordinary incomes and expenses.
 
12
Therefore the quarterly mean of the monthly one year differences in consumer price index is calculated.
 
13
For a description of the control variables see Table 6 in the appendix.
 
14
A Riester pension scheme is a state-promoted pension product aiming to improve the pension level in Germany. The Riester pension is supposed to compensate a reduction of the statutory pension level, which was part of the same “Riester-Reform”.
 
15
See Blake (2004, pp. 613–616) for the complete mathematical description of the model.
 
16
The difference operator is defined as (1-\(L^{s}\)).
 
17
For an overview of the asset distribution from 1959 to 2009 see Ramb and Scharnagl (2011).
 
18
Probably the first oil crises in 1973 influence also the portfolio distribution in 1975.
 
19
The corresponding coefficients are shown in Table 5 in the appendix. In Table 5 also the calculated (according to the adding up restrictions) coefficients of our residual asset class “time deposits” are reported.
 
20
See for example Linderkamp and Zuchandke (2012, p. 536).
 
21
Including the restrictions of homogeneity and symmetry.
 
22
The results of the restricted FAIDS are shown in Table 4 in the appendix.
 
23
See Table 3 in the appendix.
 
Literature
Barr, D.G., Cuthberston, K.: Neoclassical consumer demand theory and the demand for money. Econ. J. (London) 101(407), 855–876 (1991)
Blake, D.: Modelling the composition of personal sector wealth in the UK. Appl. Financ. Econ. 14, 611–630 (2004)CrossRef
Brainard, W.C., Tobin, J.: Pitfalls in financial model building. Am. Econ. Rev. 14(9), 611–630 (1968)
Conrad, K.: An application of duality theory. Eur. Econ. Rev. 13(2), 163–187 (1980)CrossRef
Deaton, A.S., Muellbauer, J.: An almost ideal demand system. Am. Econ. Rev. 70(3), 312–326 (1980)
Døskeland, T.M., Nordahl, H.A.: Optimal pension insurance design. J. Bank. Finance 32(3), 382–392 (2008)CrossRef
Linderkamp, T.: Impact of interest rate shocks on the asset structure of private households in Germany with particular reference to insurance. Appl. Comput. Math. 5(1), 14–20 (2015)CrossRef
Linderkamp, T., Zuchandke, A.: Is provision for old-age the main saving motive of the future? – An empirical analysis for Germany. Z. Ges. Versicherungswiss. 101(4), 527–537 (2012)
Müller, A.: Erklärung der Lebensversicherungsnachfrage anhand ökonomischer und psychologischer Einflussfaktoren. In: Müller-Lutz, H.L., Helten, E. (eds.) Beiträge zu wirtschaftswissenschaftlichen Problemen der Versicherung, vol. 40, Verlag Versicherungswirtschaft, Karlsruhe (1998)
Tobin, J.: A general equilibrium approach to monetary theory. J. Money Credit Bank. 1(2), 15–29 (1969)CrossRef
Metadata
Title
Portfolio structure of the German households and the role of insurance and pension entitlements
Authors
T. Schmidt
T. Linderkamp
A. Zuchandke
Publication date
08-10-2018
Publisher
Springer Berlin Heidelberg
Published in
Zeitschrift für die gesamte Versicherungswissenschaft / Issue 3/2018
Print ISSN: 0044-2585
Electronic ISSN: 1865-9748
DOI
https://doi.org/10.1007/s12297-018-0418-1

Other articles of this Issue 3/2018

Zeitschrift für die gesamte Versicherungswissenschaft 3/2018 Go to the issue

Buchbesprechung

Ronny Rudi Richter: Strafvereitelung wegen Nichtanzeige von Straftaten nach Prüfungen durch die Stellen zur Bekämpfung von Fehlverhalten im Gesundheitswesen

Abhandlung

Digital insurance brokers—old wine in new bottles? How digital brokers create value

Abhandlung

The impact of risk-based regulation on European insurers’ investment strategy

Schrifttum

Neuerscheinungen versicherungswissenschaftlicher Bücher – Ausführliche Hinweise

Abhandlung

Aktienanlage für Lebensversicherer unter Solvency II