Reply To: Prudence Principal

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August 23, 2019 at 8:07 am #24785
Arpit Surana
Participant

    It actually depends. In life insurance, it is different. Suppose if we are launching a product in 2010 then the mortality, lapses, and all the assumptions will be based on 2010

    But if we are calculating the reserves for 2020 (since reserving is done each year), the assumptions would be of 2020 not 2010.

    arya3340 wrote:

    I just have one more question i.e. are the assumption used for pricing and calculating reserves are same and if different than what’s the difference.

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