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http://dx.doi.org/10.14400/JDC.2016.14.12.13

An Empirical Study on the Characteristics of Policyholder and Contract Affecting a Lapse of Voluntarily Insured Person in National Pension  

Ouh, Changsu (College of Business and Economics, Hanyang University)
Song, Kyungho (Research Center for State-Owned Entities, Korea Institute of Public Finance)
Publication Information
Journal of Digital Convergence / v.14, no.12, 2016 , pp. 13-25 More about this Journal
Abstract
This paper analyses the impacts of the characteristics of policyholder and contract on the lapse of Voluntarily Insured Person in National Pension, using the recent lapse data from National Pension Service. The logistic regression model is used in examining lapse odds with several independent variables. The result demonstrates several hypotheses of the lapse behaviors. First, the lapse odds of men is lower than that of women. Second, the effect of age on lapse odds shows concave shave with the peak at 37. Third, insured period has a negative effect on lapse odds in entrants sample. Fourth, standard monthly income has little effect on lapse in either sample. Fifth, the lapse odds decreases as the expected benefit ratio increases. Sixth, 2013 pension bill resulted in the sharp increase of lapse odds and the effect was greater for entrants. Last but not least, spatial environment such as residence also affects the lapse behavior.
Keywords
National Pension; Voluntary insured person; Lapse; Characteristics of policyholder; Characteristics of contract;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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