A stochastic step forward



While life companies have been forging ahead with their stochastic modelling of assets and liabilities, non-life companies have generally been assumed to be lagging behind. But this is a simplistic view. Many non-life companies have adopted stochastic approaches with enthusiasm, and in some areas, particularly catastrophe risk, they have been using stochastic models for many years. Meanwhile, the companies face a whole other catalogue of risks compared with their life counterparts, the duration