J
Jimmy white
Member
The examiner report for September 2007 q5 (i) says on term assurance business: "this may not be significant for this contract due to the low reserves"
I would have thought that term assurance business would have a high reserving requirement relative to the amount of premium paid, given that a a small amount if prudence in the mortality assumption relative to the pricing assumption would greatly increase the expected benefit payouts. Am
I wrong?
Consequently the biggest driver of embedded value would be the release of reserves over the run-off of the business
Thanks
I would have thought that term assurance business would have a high reserving requirement relative to the amount of premium paid, given that a a small amount if prudence in the mortality assumption relative to the pricing assumption would greatly increase the expected benefit payouts. Am
I wrong?
Consequently the biggest driver of embedded value would be the release of reserves over the run-off of the business
Thanks