Life insurance and annuity products often contain implicit guarantees and policyholder options. Traditional pricing metrics often do not capture the financial ramifications of these guarantees and options. Accurately measuring and monitoring profitability, as well as analyzing different accounting methods, is becoming increasingly important for the pricing actuary.

This session explores non-traditional pricing methods. Risk neutral pricing (ie, valuing a liability as the capital markets would) is highlighted.

Targeted Value Ladder Stage: Task/Technical