While International Financial Reporting Standard (IFRS) 17 provides little guidance about coverage units and the contractual service margin (CSM), insurers may be able to find quick but reasonable choices from current modeling philosophy or certain existing standards such as U.S. GAAP. Insurers should carefully examine the consequences and reasonableness of those choices in light of the characteristics of their businesses, as coverage units are very important factors for determining the future profit signature under IFRS 17. Milliman’s Takanori Hoshino, Kurt Lambrechts, Sjoerd Brethouwer, and William Hines provide perspective in this paper.
This report by Milliman consultants summarises the Solvency and Financial Condition Reports of the main players in the life and non-life insurance business in Luxembourg. It focusses on the largest insurance entities in Luxembourg as well as some large reinsurance entities and includes an overview of the factors determining the Solvency Capital Requirement ratio.
In May 2017, the first Solvency and Financial Condition Reports (SFCRs) were published for year-end 2016. The SFCRs contain a significant amount of information, including details of the company’s performance over the reporting period, systems of governance, risk profile, valuation basis and capital requirements. This report by Milliman consultants is a summary of the SFCRs for the main players in the life, non-life and health insurance business in Belgium, focussing on a subset of insurers in the Belgian market.
An actuary can evaluate the current financial implications of future contingent events, and this enables them to consider actuarial approaches outside the financial industry, as in the nuclear waste sector. In Belgium, Milliman assisted the governmental institute NIRAS, which is responsible for the collection of highly radioactive waste from nuclear power plants. Milliman applied existing life insurance software to project planned cash flows and their security margins and performed market-consistent, risk-neutral valuations as well as real-world projections. Milliman consultant Kurt Lambrechts offers perspective in the April 2016 issue of The European Actuary.