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 …
Solvency II in a nutshell
Last update: 2025-03-20 | Created: 2022-01-01
When you become an actuary, you hear the term Solvency II a lot. It is one of the most important regulatory frameworks in the insurance industry. Designed to ensure that insurers remain solvent and can meet their obligations, Solvency II establishes risk-based capital requirements and reporting standards.
In this post, …