Hansen M, Miltersen KR. Minimum rate of return guarantees: the Danish case. Scand. Actuarial J. 2002; 4: 280 -318. We analyze minimum rate of return guarantees for life-insurance (investment) contracts and pension plans with a smooth surplus distribution mechanism. We speci cally model the smoothing mechanism used by most Danish life-insurance companies and pension funds. The annual distribution of bonus will be based on this smoothing mechanism after taking the minimum rate of return guarantee into account. In addition, based on the contribution method the customer will receive a nal (non-negative) undistributed surplus when the contract matures.We consider two different methods that the company can use to collect payment for issuing these minimum rate of return guarantee contracts: the direct method where the company gets a xed (percentage) fee of the customer's savings each year, e.g. 0.5% in Denmark, and the indirect method where the company gets a share of the distributed surplus. In both cases we analyze how to set the terms of the contract in order to have a fair contract between an individual customer and the company.Having analyzed the one-customer case, we turn to analyzing the case with two customers. We consider the consequences of pooling the undistributed surplus over two inhomogeneous customers. This implies setting up different mechanisms for distributing nal bonus (undistributed surplus) between the customers.
Every year since 2002, 150 to 200 farmers in Norway have deregistered from certified organic production. The aim of this study was to get behind these figures and improve our understanding of the reasoning leading to decisions to opt out. Four cases of deregistered organic farmers with grain, sheep, dairy or vegetable production were selected for in-depth studies. The cases were analysed from the perspective of individual competencies and the competencies available in the networks of the selected organic farmers. Besides the conspicuous reasons to opt out of certified organic farming, such as regulations getting stricter over time and low income, personal reasons such as disappointment and need for acceptance were also important. This shows that hard mechanisms, such as economic support and premium prices, are not sufficient to motivate farmers for sustained organic management. Support and encouragement, for example from people in the local community, politicians and other spokespersons, would likely contribute to increase farmers' motivation.
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