The Samuelson Award recognizes outstanding research that the private and public sectors can use to enhance Americans’ financial well-being.
The TIAA Institute said Chicago Booth’s Ralph S. J. Koijen, AQR Capital Management Distinguished Service Professor of Finance and Fama Faculty Fellow, and Stijn Van Nieuwerburgh of Columbia Business School at Columbia University have been awarded the 25th annual TIAA Paul A. Samuelson Award for Outstanding Scholarly Writing on Lifelong Financial Security. The Samuelson Award recognizes outstanding research that the private and public sectors can use to enhance Americans’ financial well-being.
The award-winning report, “Combining Life and Health Insurance,” begins with the premise that under the status quo, lifesaving treatments for cancer patients are largely inaccessible due to high cost, and that life insurers stand to benefit from helping policyholders access these costly treatments. Koijen and Van Nieuwerburgh suggest that by allowing the policyholder to either “borrow against the value of their policy at actuarially fair rates [to pay for treatment] or pay for their treatment and reduce the policy’s death benefit accordingly,” insurers could not only extend the lives of their policyholders, but they would expand the market, lower premiums and provide a more valuable product to consumers.
Applying this insight to immunotherapies that have improved the survival rate for a growing number of cancer patients, Koijen and Van Nieuwerburgh found that the benefit of FDA-approved immunotherapies amounts to about $9.8 billion per year. This value creation can help finance the cost of cancer care for patients with life insurance.
“I am grateful for this recognition and hope that our insights lead to financial innovation that improves the health and well-being of households.”
Life-extending medical innovation may lower the cost of life insurance, stimulate the development of new life-extending treatments and redraw the boundaries between life and health insurance.
“The analysis provided in this report has the potential to change the game for both the health and life insurance industries,” said David P. Richardson, Managing Director of Research for the TIAA Institute. “Life-extending treatments are often prohibitively expensive for patients, yet they could save the life insurance industry billions of dollars annually. This report encourages us to think boldly about how to reimagine the way the health and life insurance industries operate to improve access to these types of treatments and save countless lives.”
“I am grateful for this recognition and hope that our insights lead to financial innovation that improves the health and well-being of households," said Koijen. “Our work suggests that life insurers have an incentive to help their policyholders achieve longer and healthier lives,” added Van Nieuwerburgh. “We predict the boundaries between life and health insurance industries will erode to the benefit of society."
“This paper is exceptional for its innovative approach to designing insurance products that improve individuals’ access to life-extending treatments,” said Samuelson Award Judge and TIAA Institute Fellow Julie Agnew. “It is not only the authors’ rigorous and detailed analyses that make this paper stand out but the care the authors take to seek out and incorporate feedback from industry leaders to ensure their recommendations are practical and actionable. This is in the true spirit of the Samuelson Award.”
Learn more about the TIAA Paul A. Samuelson Award here.
At the second event in Booth’s Future of Capitalism series, experts explored the impact of climate change on the future of the economy.
The Economic Uncertainty of Climate Change
Booth researchers are exploring what should drive corporate decisions in the twenty-first century.
Should Companies Focus on Profits?
New faculty research on the impact of income shocks on Black and Hispanic families, how mutual fund managers have fared, and long-term changes to business travel
COVID-19 Thought Leadership Digest: September 14
Stay informed with Booth's newsletter, event notifications, and regular updates featuring faculty research and stories of leadership and impact.
YOUR PRIVACY
We want to demonstrate our commitment to your privacy. Please review Chicago Booth's privacy notice, which provides information explaining how and why we collect particular information when you visit our website.
