Agenda
Background
Important concepts
The criteria for risk margin
Methods to calculate risk margin
Practical Issues and Recommended Solution
Where are we now and where will we go from here?
Speaker’s preference
Background
According to International Financial Reporting Standard, the
measurement of insurance liability need to include following :
1. Current Estimate
2. A discount to current estimate
3. Margin
Current Estimate : Amount of future cash flow.
The margin can be further split into risk margin and residual margin.
Risk Margin : maximum amount that insurer would
rationally pay to be relieved of the risk that actual cash flow
exceed expected.
Residual Margin : to eliminate gain at inception of the
contract.
This presentation will focus on the risk margin.
Important Concept
Two Perspectives of Risk Margin
Financial Reporting (IFRS)
Risk Margin as price to bear a risk (exit value)
If no observable market value, then calculate it using
cost to bear a risk approach (fulfilment value).
Solvency Regulation (Solvency II)
Policyholder protection view (Prudence)
Risk Margin as a provision to ensure policyholders are
safely protected. (Confidence level)
They are different!
This presentation will focus on risk margin from financial
reporting perspective.
The criteria of risk margin
Bottom-line
Applied consistently
Theoretically correct
Easy to apply
Useful to stakeholder
Easy to explain to stakeholder
IAIS
The less that is known about the current estimate and its trend; the higher the risk
margins should be
Risks with low frequency and high severity will have higher risk margin than risks
with high frequency and los severity
For similar risks, contracts that persist over a longer timeframe will have higher risk
margins than those of shorter duration
Risks with a wide probability distribution will have higher risk margins than those
risks with a narrower distribution
To the extent that emerging experience reduces uncertainty, risk margins will
decrease, and vise versa
Senior management & new metricsExpect senior management to be skeptical regarding any new metricsv Before the big meetings, sell the value of the ...
已下载:0次 是否免费:否 上传时间:2012-03-25Abstract The upcoming presentation mainly discusses and delivers the following contents: l Reserve and capital l The most important measure for the...
已下载:0次 是否免费:否 上传时间:2012-03-24The implications of insurance deregulations – International experience and lessons learned 费率市场化—国际经验分享 Lyndall Wilson, BSc, PGDip (Actuarial), FIA ...
已下载:0次 是否免费:否 上传时间:2012-03-18Pricing for Risks: Ideals and Reality 2010 Joint Regional Seminar By Society of Actuaries, Faculty Institute of Actuaries, Institute of Actuaries of ...
已下载:1次 是否免费:否 上传时间:2012-03-10The Global CERA CredentialA Global CredentialCERA as a Global CredentialIdea emerged from discussions at meetings of the International Actuarial Assoc...
已下载:0次 是否免费:否 上传时间:2012-03-08Economic capital – shedding light on some issues Management and policyholder decisions Aggregation and allocation Economic scenario generators (ESGs) ...
已下载:0次 是否免费:否 上传时间:2012-03-07Copyright © 2009-2022 深圳市圈中人电子商务有限公司 粤ICP备05047908号
您是否真的需要安全退出?
确认退出