Life Insurance
Liability Valuation and Capital Assessment
Increasingly, life insurers need to understand the economic value of their liabilities and the financial risks and capital needs they generate. For many this need has been underlined by the growing body of statutory regulation, such as Solvency II in Europe and the PBA programme in the United States, while for others, adopting a more rigorous approach to reserving capital is simply the right approach to managing the inherent risks in the array of complex products on the market.
Models for valuation and projection
The application of stochastic modelling is the credible solution to mitigating risk while also ensuring regulatory compliance. So whether your challenge is understanding the value of guarantees embedded in your products; projecting valuations into the future, or investigating sophisticated capital management strategies such as dynamic market-risk hedging programmes, Barrie & Hibbert can help.
Our core modelling platform, the Barrie & Hibbert Economic Scenario Generator (ESG), drives the framework that allows firms to measure and manage risk. It does this by projecting an unlimited number of forward-looking scenarios for a wide range of economic and financial risk-factors.