Oblig solution
There was a discussion last time about whether the premium should be stressed in the stressed scenarios for mortality and longevity risk. After a long discussion with a colleague, the conclusion was that the premium should NOT be stressed. The comment that many of you got to your report was therefore wrong, and this has been corrected in the solution that is now avaliable on the course page. The reason why the premium should not be stressed, is that it is fixed by the contract, and that the risk of increasing/decreasing mortalities is borne by the company and not by the policy holders.
Published May 2, 2018 11:10 AM
- Last modified May 2, 2018 11:10 AM