Life insurance risk management essentials

Viac o knihe

This book provides an overview of risk management in life insurance companies, focusing on two main aspects: a broad understanding of essential topics and the practical application of tools and techniques. The presentation is designed to convey theory in a clear yet rigorous manner. Initial chapters define and analyze valuation concepts, emphasizing the risks associated with assets and liabilities like bonds, shares, and insurance liabilities. Subsequent chapters explore risk appetite, key insurance processes, and their associated risks. This general overview is followed by detailed discussions on asset risks, insurance risks, and operational risks, highlighting model applications and risk reporting. The book also examines the intrinsic risks of specific insurance products and methods for their analysis. It concludes with a look at emerging risks and regulatory perspectives, including an analysis of the Solvency II standard model and the Swiss Solvency Test. Additionally, several mathematical appendices cover fundamental tools such as probability theory, stochastic processes, Markov chains, and a stochastic life insurance model. These appendices also address the mathematical formulation of valuation concepts like replicating portfolios and arbitrage-free pricing. The book is enriched with supportive tables and figures throughout.