Autor: Willington Manuel, Gabrielli María Florencia, Fajnzylber Eduardo

Institución: Universidad del Desarrollo

Año: 2022

JEL: G14, G22, J32, D82


In this letter we show evidence that the introduction of an electronic platform in the Chilean annuity market in 2004 exacerbated adverse selection. Male annuitants who retired after 2004 live around two years longer than non-annuitants, while before the difference was smaller or non statistically significant. Moreover, post 2004 the fraction of annuitants decreased despite the fact that the deals offered by insurance companies improved. These two facts are consistent with the electronic platform bringing transparency, competition, and reducing the scope for sales agents to affect retirees' choices.