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
-
26 June 2025PRESS RELEASE: Insurers intensify focus on stress testing, scenario modelling and asset liability managementPress release: Insurers ramp up investment in stress testing and scenario modelling. Global study highlights rising ALM budgets and outsourcing trends.
-
17 June 2025PRESS RELEASE: Insurers boost private assets allocations as capital increasesPress release: Insurers plan to boost private asset allocations in 2025. Global study reveals key trends and barriers in transparency and reporting
-
16 June 2025Ortec Finance appoints Michelle Li as Head of AustraliaMichelle Li will oversee the day-to-day operations of the Australian business while continuing to lead its local investment performance team.
-
13 June 2025How scenario analysis and balance sheet simulation can help in a volatile marketInsurers: Tackle market volatility with scenario analysis and balance sheet simulation. Sander Dekker explains how to strengthen strategy and solvency.
-
10 June 2025Optimizing Insurance Portfolios with SBML: Ortec Finance & M&G InvestmentsOptimizing Insurance Portfolios with SBML: Ortec Finance & M&G Investments
-
06 June 2025Ortec Finance ranked in RiskTech top 50 AI by Chartis ResearchChartis Research names Ortec Finance in RiskTech AI 50 2025 for excellence in machine learning and GenAI in finance. Read the full report.
-
05 June 2025PRESS RELEASE: Insurers ‘planning to increase investment risk profiles’Press release: Global study finds long-term liquidity is top concern for insurers as risk profiles are set to rise. Explore what’s driving the shift.
-
28 May 2025Using traditional attribution methods to analyze ESG performanceLearn about a new ESG attribution model designed to help financial institutions integrate ESG impacts into their investment decision-making
-
28 May 2025Stress Testing your Balance Sheet in the Global Trade War EraIn an era of rising geopolitical tension and unpredictable market movements, traditional risk management may no longer be enough.