Life insurance products are often characterized by embedded options and guarantees. The value of these options and guarantees depends heavily on the prevailing economic conditions.
Examples are the interest rate in case of profit-sharing options or the return on investments in case of Unit-Linked products with a return guarantee. The value of embedded options and guarantees is an integral part of the market value of insurance liabilities. A correct and consistent valuation is therefore essential. Not only from the perspective of good risk management, but also for internal and supervisory reporting.
Related Insights
-
02 October 2025Webinar recording: Investing in private assets through a climate change lensWatch out webinar to learn about the unique climate-related challenges of private assets across physical, transition and market pricing risks and opportunities.
-
29 September 2025Taking Strategic Asset Allocation into the Next Dimension with SBMLExplore how AI is revolutionizing insurance strategic asset allocation, driving efficiency, enhancing client satisfaction, and boosting profitability.
-
24 September 2025PRESS RELEASE: Insurers ready to take on more risk as capital to invest rises, report saysPrivate markets will be among the main beneficiaries with private debt, private equity and real estate the key sectors
-
17 September 2025Finity and Ortec Finance partner to offer advanced climate scenario analysis for investment portfoliosLearn how Finity will utilize our Ortec Finance Climate Scenarios to help Australian financial institutions manage climate risks
-
16 September 2025The enduring value of decision-based attribution for asset owners managing multi-asset portfoliosLearn how our decision-based attribution’s top-down approach continues to empower asset owners to navigate the ever-evolving investment landscape.
-
16 September 2025The Case for Sophisticated ALM Models in Life Insurance Investment StrategyAPAC life insurers face rising ALM complexity. Advanced models like SBML boost solvency, capital efficiency & innovation—spreadsheets fall short.
-
11 September 2025PRESS RELEASE: Insurers expect improved investment opportunities this yearInsurers expect stronger investment opportunities in 2025. Global study reveals key strategy shifts, see where risks are rising and where to focus next.
-
01 September 2025Understanding Geopolitical Risk: Why It Matters for InvestorsThis article focuses on how such dynamics intersect with strategic investment planning, particularly in areas where we can provide meaningful support, such as asset-liability management, scenario modelling, stress testing, and portfolio optimization.
-
28 August 2025PRESS RELEASE: Insurers need support on understanding climate investment impactInsurers face gaps in climate risk investment impact. Global study reveals key strategy trend, learn how firms can close the knowledge gap.