Department of Finance

 

Date of this Version

2006

Document Type

Article

Citation

Journal of Actuarial Practice 13 (2006) pp. 81-102

Comments

Copyright 2006 Absalom Press

Abstract

The paper deals with solvency assessment for life insurance business; some methodological issues concerning the solvency of life insurance companies, particularly connected to the investment risk, are suggested. Considerations about the technical equilibrium of an insurance portfolio and the financial regulation lead to a dynamic system involving risk measure and solvency assessment. The formal model is applied to a life annuity cohort in a stochastic context in order to exemplify the potential of the model, especially referred to the need to frame solvency assessment in a dynamic perspective.

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