Rise of the Replicants

An increasing number of insurers are turning to replicating portfolios to improve their understanding of the risks on their books. But has the recent bout of economic turmoil proved the worth of this technique? Clive Davidson Reports


In an uncertain economy and with volatile markets, the need for more detailed and timely risk information is clear. Meanwhile, regulators are demanding that risk analysis is stochastic, looking at distributions of probabilities over various time horizons. But with liabilities growing ever more complex, especially in the life business, and asset portfolios including an ever wider range of instruments, modelling risk and capital is becoming a considerable challenge. Traditional methods often take

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The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

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