Time Step
Time step is important. Devil in the details.
1. Introduction to Time Step
2. Monthly Conversion
3. Coupon in GCV
4. Age Nearest Birthday (ANB) vs Age Last Birthday (ALB)
5. Monthly vs Yearly investment income
6. Reconciliation between monthly and yearly model
Monday, July 1, 2047
Index page for Embedded Value
Embedded Value
Embedded Value
1. Stochastic Model
2. Time Value of Option and Guarantees (TVOG)
3. Cost of Non-Hedgeable Risk (CNHR)
4. Embedded Value (EV)
5. Market Consistent Embedded Value (MCEV)
Index page for Solvency Margin
Solvency Margin
Solvency Margin, capital.
Index
1. Introduction to Solvency Margin
2. Solvency Margin
3. Cost of Capital
4. Present Value of Distributable Earnings (PVDE)
5. Leakge Test II
6. Solvency I vs Solvency II
Solvency Margin, capital.
Index
1. Introduction to Solvency Margin
2. Solvency Margin
3. Cost of Capital
4. Present Value of Distributable Earnings (PVDE)
5. Leakge Test II
6. Solvency I vs Solvency II
Index page for Profit
Profit
Profit, it is your earnings!
Index
1. Introduction to Profit
2. Gross Profit and Profit
3. Present Value of Future Profit (PVFP)
4. Leakage Test I
5. Retained Earnings
6. Reserving, Investment Income and Profit
Profit, it is your earnings!
Index
1. Introduction to Profit
2. Gross Profit and Profit
3. Present Value of Future Profit (PVFP)
4. Leakage Test I
5. Retained Earnings
6. Reserving, Investment Income and Profit
Index page for Product Features
Product Features
Some may think that there are too many insurance product features in the world to be summarized in one book. I partly agree with it: as long as one understand its principle, it is not hard to find out that all product features are in deed similar. They are only variation of cashflows (as we have introduced the generalized cashflow model).
The truly varying part of product features, can be summarized below:
1. Whether some roll-forward balance(s) are needed
2. The base of the payment (Premium or Face Amount or Underlying Items)
3. The conditions that payment will be delivered
However difficult, we will introduce some commonly seen product features (in Asia) below, including both Traditional Life (TL) and Universal Life or Unit Linked (UL).
Junior actuaries are always confused because they are not familiar with insurance product features, and they can only learn them through work or search them online. I hope this blog can summarize all the useful product features for you as a reference.
Index
TL product features
1. Introduction to Traditional Life (TL)
2. Return of Premium (ROP)
3. Waiver of Premium (WOP)
4. Dividend on Deposit (DoD)
5. Revisionary Bonus (RB)
6. Accelerated Critical Illness (ACI)
7. Multiple Claim Critical Illness (MCCI)
8. Mortgage Reducing Term Assurance (MRTA)
UL product features
9. Introduction to Universal Life / Unit-linked (UL)
10. Premium Holiday
11. Partial Withdrawal
12. Account Value
13. Crediting rate and Fund growth rate
14. Cost of Insurance and other deductions
15. Loyalty Bonus
16. Fee Income Approach
Some may think that there are too many insurance product features in the world to be summarized in one book. I partly agree with it: as long as one understand its principle, it is not hard to find out that all product features are in deed similar. They are only variation of cashflows (as we have introduced the generalized cashflow model).
The truly varying part of product features, can be summarized below:
1. Whether some roll-forward balance(s) are needed
2. The base of the payment (Premium or Face Amount or Underlying Items)
3. The conditions that payment will be delivered
However difficult, we will introduce some commonly seen product features (in Asia) below, including both Traditional Life (TL) and Universal Life or Unit Linked (UL).
Junior actuaries are always confused because they are not familiar with insurance product features, and they can only learn them through work or search them online. I hope this blog can summarize all the useful product features for you as a reference.
Index
TL product features
1. Introduction to Traditional Life (TL)
2. Return of Premium (ROP)
3. Waiver of Premium (WOP)
4. Dividend on Deposit (DoD)
5. Revisionary Bonus (RB)
6. Accelerated Critical Illness (ACI)
7. Multiple Claim Critical Illness (MCCI)
8. Mortgage Reducing Term Assurance (MRTA)
UL product features
9. Introduction to Universal Life / Unit-linked (UL)
10. Premium Holiday
11. Partial Withdrawal
12. Account Value
13. Crediting rate and Fund growth rate
14. Cost of Insurance and other deductions
15. Loyalty Bonus
16. Fee Income Approach
Index page for Discounting
Discounting
Discount rate is complicated...
Index
1. Introduction to Discounting
2. Methods of Discounting
3. Timing of Cashflows
4. Best Estimated Liabilities (BEL)
5. Investment Income
6. Risk Neutral vs Real World Discount
7. Myth of "Earn = Discount"?
Discount rate is complicated...
Index
1. Introduction to Discounting
2. Methods of Discounting
3. Timing of Cashflows
4. Best Estimated Liabilities (BEL)
5. Investment Income
6. Risk Neutral vs Real World Discount
7. Myth of "Earn = Discount"?
Index page for Reserving
Reserving
Reserving is complicated...
Index
1. Introduction to Reserving
2. GPV Reserving
3. Commutation Functions
4. NPV Reserving
5. FPT Reserving
6. CRVM Reserving
7. Zillmerization
Reserving is complicated...
Index
1. Introduction to Reserving
2. GPV Reserving
3. Commutation Functions
4. NPV Reserving
5. FPT Reserving
6. CRVM Reserving
7. Zillmerization
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