Valuing New Businesses for Life Insurance

Aside of providing protection to policyholders, a life Insurance contract can be seen as a financial agreement that also provides value to the shareholder. However, future uncertainties that are inherent within a life insurance contract sparks questions on how one should conduct the valuation process to give a consistent best-estimate value. We will dive into the basics on how actuaries need to perceive valuation. Several key discussion points are:
- What does it mean to value a life insurance contract?
- Real World vs Market Consistent valuation basis
- Market Consistent’s VONB  vs IFRS17’s NB CSM
- Actuarial Control Cycle within New Business calculation