product which is now open to sales. The Economic scenario has changed significantly as a result of which the valuation actuary had to revise the valuation assumptions. the first few policies sold for this product produced negative reserves.
1. What do we mean by Negative reserves?(Be as explanatory as possible)
2. Why do most regulators ask the insurance companies to set the negative reserves to zero ?
Orignal From: The Pricing Actuary of a company had recently priced a non participating 10 yr. regular premium Endowment?
Post a Comment