Advertisement
Published in:
05-01-2017 | Abhandlung
The dynamics of premium reserves of life annuities under the regime of Solvency II
Published in: Zeitschrift für die gesamte Versicherungswissenschaft | Issue 5/2016
Log inActivate our intelligent search to find suitable subject content or patents.
Select sections of text to find matching patents with Artificial Intelligence. powered by
Select sections of text to find additional relevant content using AI-assisted search. powered by
Abstract
The article considers the solvency requirements for a whole portfolio of annuities under the regime of Solvency II. More precisely, the following question is investigated: Which demand of interest on the initial capital – the Solvency II premium reserves – is needed in order to fit the balance for Solvency II capital requirements in the next year? It turns out, that even for a model portfolio of simple annuities with say guaranteed interest rate of 1,25% the demand of interest in one year is greater than 3%. So even if a life insurance company fulfill the capital requirements of Solvency II in 2016 the mentioned effect causes eventually problems in future times.