The study of games in variable life insurance

We establish a dynamic game model for variable insurance, and find some interesting properties about the variable insurance. For example, the expected rate of return of separate account is not lower than the whole rate of return of the insurance company; the opinion of the insurace applicant on the investment ability of the separate account effects the decisions of the insurance company; compared with the fixed insurance, the unit avenue of the variable insurance for the insurance company is decreased, but the whole avenue is increased. We also study the effect of regulation on the interest rate and the ratio of fundamental insurance safeguard.