Profit sharing with the life insured and solvency

José Luis Pérez Torres, Spain

Profit sharing of investment returns with the insured can take place through diverse procedures. On one hand, the firm guarantees the future behaviour of mortality and interest rate. On the other hand, the firm focuses on the efficient administration of the fund. All of them, including those of attenuated insurance, begin with a common formula that with certain modifications can provide us with different perspectives. During the first part of the report the author focuses in the different variations of the common formula and its main components. Towards the end of the report the author examines the different variations from a risk and solvency perspectives.
Date: 1 June - Time: 11:00 to 12:30 - Room: 341
Theme: 1.B. Solvency measurements and asset-liability management