Life Insurance: Reserving
摘要
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.