A new study tests common actuarial assumptions used in life insurance valuation against numerical simulations, providing insights into the reliability of simplified surplus and liability models.
The research evaluates these assumptions using realistic life insurance data, identifying areas where the models remain accurate and where they fail to capture the complexity of real-world scenarios. By comparing the results of numerical simulations to the predictions made by these models, the study aims to provide a clearer understanding of their limitations and potential pitfalls.
The findings of this study are expected to have significant implications for the life insurance industry, as they highlight the importance of using realistic data to test actuarial assumptions. As the industry continues to evolve, the need for accurate and reliable models will only continue to grow, making this research a crucial step forward in the development of more sophisticated and effective life insurance valuation methods.
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