Actuarial cash flow models play a key role in financial and insurance analysis. They help actuaries estimate future cash movements based on policyholder behaviour, economic conditions, and various assumptions. Understanding these models is essential for pricing, reserving, and risk management. In this post, we will explore how such models work …
Blog posts
Deterministic and stochastic models
Last update: 2025-03-21 | Created: 2022-04-12
Insurance companies rely on two main approaches for cash flow modelling: deterministic and stochastic. These models help estimate future liabilities of insurance products, guiding actuaries in predicting the future using historical data and expert judgment. Understanding the differences between these approaches is crucial for assessing financial risks and making …
Interest rates
Last update: 2025-03-21 | Created: 2022-02-25
Interest rates play a vital role in actuarial cash flow models by helping us figure out the value of money over time. In this blog post, we'll show you …
Insurance with riders (multiple model point sets)
Last update: 2025-03-20 | Created: 2023-07-12
Before we dive into building an insurance model with riders, let's briefly outline what this post will cover. Insurance products often come with optional coverages — also known as riders — that allow policyholders to extend their protection. Modelling such products requires a structured approach to handling multiple coverages efficiently. …
Scope of the VFA in IFRS 17
Last update: 2025-03-20 | Created: 2022-05-18
In life insurance under IFRS 17, there are two main valuation approaches: the General Measurement Model (GMM) and the Variable Fee Approach (VFA). This post focuses on the Variable Fee Approach - what it is and when it applies.
The VFA is a modification of the GMM, specifically for direct …