Towards a standard for market-consistent embedded value reporting

Paul Whitlock~Ben Pollard, United-Kingdom

Demand from investors for objectivity, comparability and consistency in embedded value reporting is leading many insurance companies to calculate their European Embedded Values on a market-consistent basis. However, there has been significant debate about what actually constitutes a market- consistent embedded value, creating further confusion for investors. In this paper we seek to focus on the fundamental objectives of investors and propose a set of standards for market-consistent embedded value reporting. These standards are explicitly designed for ease of investor communication and to fit cleanly into the European Embedded Value principles.
Date: 2 June - Time: 8:30 to 10:00 - Room: 251
Theme: 1.B. Solvency measurements and asset-liability management