|5th - 7th May 2011 | Warsaw / Poland|
About two decades ago first valuation methods for life insurance business have been developed. Initially this has been used mainly by actuaries for internal purposes to measure profitability of life insurance business.
For the large multinationals, external demands have lead to disclose Embedded Values as supplementary information to the financial accounts. In order to harmonise the Embedded Value reporting, the European Embedded Value Principles have been published by the European Insurance CFO Forum © in 2004 with an update in 2008. These developments have to be seen in conjunction with the introduction of Solvency II and IFRS Phase II, where the “fair value” of liabilities plays an integral role as well.
This process strongly influenced the role of actuaries within the companies and will further influence the importance of this profession. Over the past years the role has dramatically changed from a “number cruncher” to a “risk manager” with a focus on interpretation and communication of results to senior management.
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