For an insurance company, ensuring the proper coordination between assets and liabilities in order to achieve targeted financial objectives is of paramount interest. A strategy used to reach such objectives is "asset and liability management" (ALM in short). ALM can therefore be viewed as any ongoing process that defines, implements, and monitors financial strategies to manage […]

For an insurance company, ensuring the proper coordination between assets and liabilities in order to achieve targeted financial objectives is of paramount interest. A strategy used to reach such objectives is "asset and liability management" (ALM in short). ALM can therefore be viewed as any ongoing process that defines, implements, and monitors financial strategies to […]

The debate on climate change has rapidly evolved in recent years. It is no longer on whether the evidence of human impact on climate change is real, but on whether key mitigating strategies being adopted are sufficient.   For insurance industry, climate change manifests itself through a variety of risks on the asset and liability […]

Up to 2022 additional financial reporting on sustainability has been done on a voluntary basis by insurance companies. The reporting companies, usually larger groups, regularly involve actuaries in the corresponding preparation of information. Early in 2022 relevant institutions have started to prepare concrete financial reporting requirements at European level, which will become mandatory for insurance […]

The IASB issued 2017 the new comprehensive insurance accounting standard IFRS 17, with amendments issued in 2020. In line with IFRS 9, IFRS 17 does not permit to present receipts and repayments of deposits, in IFRS 17 referred to as investment components, in P&L. In general, all payments which do not represent the provision of […]

The needed identification of cash flows not related to services introduces new considerations in the accounting process. Those will be discussed and approaches to achieve an adequate reflection in presentation. That does not only apply to contracts with savings elements, as in life insurance. As well non-life insurance contracts and reinsurance contracts often contain investment […]

Price walking, demand modeling and price elasticity between theory, regulation and practice In recent years, a lot of progress has been made in predictive modeling in theory and practice. This leads in particular to stronger technical models in pricing, but related issues such as demand modeling are also receiving more and more attention. First and […]

Price walking, demand modeling and price elasticity between theory, regulation and practice   In recent years, a lot of progress has been made in predictive modeling in theory and practice. This leads in particular to stronger technical models in pricing, but related issues such as demand modeling are also receiving more and more attention.   […]

For an insurance company, ensuring the proper coordination between assets and liabilities in order to achieve targeted financial objectives is of paramount interest. A strategy used to reach such objectives is "asset and liability management" (ALM in short). ALM can therefore be viewed as any ongoing process that defines, implements, and monitors financial strategies to […]

Natural Catastrophe Models are a key ingredient for the assessment of Nat Cat risk. Questions like “What losses do we expect from catastrophic events on average?” and “What losses do we need to expect in the worst case?” are becoming more and more relevant, in particular considering climate change. Natural Catastrophe Models try to answer […]

Inflation does not come and does not go on its own. Although many actors on financial markets hoped for a temporary inflation caused by supply chain disruptors, things have changed due to uncertainty from a geopolitical and financial markets perspective. Interest rate curves are now starting to be inverse and recessions are potentially only off […]