Assessment of investment risks and the interest rate basis by the actuary in property and casualty insurance
Abstract
The advisory note provides an overview of the assessment of investment risks and the interest rate basis for accident insurance with guaranteed premium refund and for ongoing property and casualty pensions.
The starting point is the guideline "Review of the Financial Position by the Responsible Actuary," which applies to life insurance companies as well as (under certain conditions) pension funds and pension schemes. It outlines the requirements for assessing investment risks, coverage of the solvency margin, and the security of the interest rate basis. This paper presents how the issues addressed therein can be handled by property and casualty insurance companies.
This overview serves only as a preliminary orientation and does not replace the consideration of the detailed statements of the technical principle.
Professional standards of practice are DAV publications that – together with the rules of professional conduct – set out the fundamental principles for the correct practice of actuarial activities. Professional standards of practice are characterised by their
- treatment of specialist actuarial and professional issues,
- fundamental significance and practical relevance for actuaries,
- professional legitimisation through a implementation process that allows all actuaries to be involved in such implementation,
- correct application, with members being professionally safeguarded by a disciplinary process.
The professional standard of practice „Prüfung der Anlagerisiken und der Rechnungsgrundlage Zins durch den Aktuar in der Schaden-/Unfallversicherung” Titel “Assessment of investment risks and the interest rate basis by the actuary in property and casualty insurance“ is an advisory note. Advisory notes are professional standards that are to be taken into account in actuarial considerations, the application of which can be freely decided upon in individual cases, however, within the framework of the code of conduct, and which address specific questions.
