The extrapolation conundrum

The extrapolation conundrum

extrapolation

Being able to predict future liabilities accurately is at the very heart of everything a life insurer does. But despite this, some fairly fundamental questions have not been addressed adequately within the Solvency II framework about how long-term cashflows should be valued – and this is making the insurance industry nervous.

The cornerstone to predicting future cashflows is working out the rate at which market instruments should be discounted, so as to derive the best approximation of market

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: