Life Insurance: Reserving

Massimiliano Maggioni and Giuseppe Turchetti
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Massimiliano Maggioni: University of Milano
Giuseppe Turchetti: Sant’Anna School of Advanced Studies

Chapter 14 in Fundamentals of the Insurance Business, 2024, pp 321-332 from Springer

Abstract: Abstract This chapter explains the concept of life technical reserves. In the life business, the generic reference made to technical reserves includes various types of reserves, among which the mathematical reserve is the most significant. The mathematical reserve expresses a debt towards assureds under contracts issued in the past for performances that may still be demanded by assureds in the future. At the beginning of the discussion, the principle of equivalence between premiums and performances is illustrated. The three methods for calculating the mathematical reserve are presented: the prospective method, the retrospective method and the recurring method. For each method, the actuarial formula are described. In the paragraphs that follow, for better comprehension, the progress of the mathematical reserve over time graphs are illustrated. Then, the components of the reserves for future expenses are described in the last part of the chapter. Reserve assessment criteria are illustrated in the final part.

Keywords: Technical reserves in life business; Mathematical reserve; Single premium term life insurance; Annual premium term life insurance; Single premium endowment insurance; Annual premium endowment insurance; Whole of life insurance with a single premium; Immediate annuity with a single premium; Reserves for future expense (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-319-52851-9_14

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DOI: 10.1007/978-3-319-52851-9_14

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