Any experienced Actuaries or actuarial students, Please could you answer? 1) what is valuation interest rate, no maths, just text please? My idea is that It is the investment return expected to be earned on your reserves.(Prudent assumption of course). 2) How would you get your VIR in real life? Again my opinion is Allocate assets matching (nature, term, currency,....) as far as possible to the liabilities. Look to see what interest rate I would earn on this. Knock off say 0.5% from it for prudence. 3) One year term , GI or LI. Will you use VIR? My thoughts are you probably wont. The office premium will be so high with the profit margin that you will be quite certain on meeting liability and investment return will hardly make a difference. 4) Embedded value calculation. Will the reserves be based on realistic assumptions or statutory?
