Valuation of Reserves and Capital Requirements in Life Insurance, Group and Health Insurance

Course 4B of the Association's actuarial programme — the reserves, capital and financial reporting of a life insurer, as well as group and health insurance at a professional level. The course covers methods for valuing reserves and guarantees, capital requirements and solvency, asset-liability management, profit participation, IFRS 17, experience analysis, reserving for group and health claims, life and health reinsurance, professional standards and actuarial communication.

Course programme

1. Reserve valuation methods in life insurance — net and gross premium reserves, valuation bases, negative reserves, surrender value floor.
2. Reserving for options and guarantees — interest rate guarantee, annuity guarantee, intrinsic and time value of an option.
3. Capital requirements and risk profile — shock scenarios, aggregation with correlations, risk appetite.
4. Asset-liability management — survival-adjusted duration, duration gap, immunisation.
5. Solvency and capital adequacy — capital tiers, coverage ratio, own risk assessment, 3-year projection.
6. With-profits contracts and profit distribution — sources of profit, bonuses, contribution method.
7. Financial reporting and IFRS 17: an introduction — cash flows, risk adjustment, contractual service margin, onerous contracts.
8. Experience analysis and updating assumptions — actual versus expected, significance, analysis of profit by source.
9. Group life and disability insurance — disability claims reserve, IBNR, renewal rate.
10. Health insurance: underwriting and pricing — age-sex factors, trend, rate review.
11. Health claims reserving — completion factors, per member per month method.
12. Life and health reinsurance — risk premium reinsurance, coinsurance, catastrophe cover.
13. Professionalism, data quality and actuarial communication — reconciliations, materiality, actuarial report, ethics.

Each lesson comes with study notes containing a table of notation, a worked example and self-study problems, plus a lesson test. The course final test has 45 tasks, including comprehensive case studies, and leads to an ASAB certificate.

Duration: 13 video lessons, 3 h 9 min of video + lesson tests and a final test.