A recent study has been conducted to evaluate common actuarial assumptions used in life insurance valuation by testing them against numerical simulations, providing insights into the reliability of simplified surplus and liability models.
The study aims to identify areas where these models remain reliable and where they break down, using realistic life insurance data to test the assumptions. By doing so, it provides a comprehensive understanding of the strengths and limitations of these models, which is essential for accurate life insurance valuation.
The outcome of this study is expected to have a significant impact on the life insurance industry, as it will help actuaries and insurance companies refine their valuation models and make more informed decisions. As a result, the study’s findings will likely influence the development of more accurate and reliable life insurance valuation methods, ultimately benefiting both insurance companies and policyholders.
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