
Faculty of Actuarial Science & Insurance Seminar with M. Mercedes Bielsa (University of Barcelona)
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Abstract
Reverse mortgage is one of the products (perhaps the main one) that is good to obtain additional income by using the habitual residence as collateral. This paper analyzes the effects that contracting a reverse mortgage has on the finances of families of a country or group whose members who aged 65 or older are the sole owners of the 100% of the property, regardless of the receipt of a retirement pension. For this purpose, an economic-financial model based on the life cycle model is defined, which considers a double source of randomness: mortality and dependence of family members. Long-term effects are measured using probabilistic, temporal and monetary indicators. For each country, the model must be adapted according to the legal framework for retirement and long-term care benefits and for the actuarial mortality and long-term care tables. We also studied the importance of the socioeconomic group to which the family belongs in quantifying these effects. As an illustration, this model was applied on Spanish families using data from the Spanish Survey of Household Finances 2017.
Biography
M. Mercè Claramunt Bielsa holds a PhD in Economics and Business Studies (University of BarcelonaB) and is an Actuary from the same university. She is a research associate professor at the University of Barcelona and has focused her research and teaching career on pensions, insurance and the solvency of insurance companies. She has been coordinator of the Doctorate in Business at the University of Barcelona, general coordinator of the Doctorate in Business Studies at the University of Barcelona and coordinator of the Master in Business, Finance and Insurance Research at the same university.
She is currently head of the research group consolidated by the Generalitat de Catalunya, Actuarial and Financial Modeling. She is also head of research at the Observatory of European Complementary Social Pension Plans.
She is a member of the Col·legi d'Actuaris de Catalunya (CAC) and of the education and Pension committees of the Actuarial Association of Europe and the International Actuarial Association as a representative of the CAC, and also a member of the OPSG of EIOPA.