Gumbel copula reveals key to accurate joint-life policy pricing
The researchers analyzed how people's lifespans are connected using a method called the Gumbel copula. They compared it to another method called the Clayton copula to see which one worked better. By looking at data on joint-life annuities, they found that the Gumbel copula with logistic marginals was the most accurate in predicting how long people would live together. This information is important for setting prices on joint-life insurance policies.