Calculation of Life Insurance Products by Means of Markov Chains
24 January 2024 | 10:00-12:00 CET
The calculation of life insurance products is traditionally based on the approach of commutation values, whose table properties enable extensive actuarial calculations even without large computer capacities. However, especially for modern and more flexible life insurance tariffs, the calculation by means of commutation values reaches its limits, so that the calculation approach based on Markov chains is gaining in importance and has been used for some time in the mathematical cores of new portfolio administration systems.
This web session will provide an insight into the calculation of common life insurance products using the Markov approach. For this purpose, first an overview of the best-selling life insurance products in some European countries and their classic calculation will be given. In the following, the principle of Markov chains is explained and a model for calculating actuarial values is derived.
Finally, the training also addresses problems that can arise when migrating from classically calculated portfolios to systems with the Markov approach.
This web session is suited for actuaries in (but not restricted to) life insurance with experience in the traditional calculation of life insurance products by means of commutation values.
Your early-bird registration fee is € 100.00 plus 19% VAT for bookings by 13 December 2023. After this date, the fee will be € 140.00 plus 19% VAT.