University of Waterloo Faculty to Mathematics researchers have developed a new method that enables large insurers to reduce the time spent estimating the financial liabilities of their portfolios from days to hours while achieving high accuracy.
A study details the new method which significantly reduces computational time, but still estimates the financial liability of variable annuity portfolios accurately for business purposes.
A variable annuity is a variety of popular insurance products that offer policyholders benefits linked to the financial markets performances. Variable annuities provide great flexibility to satisfy different policyholders’ needs. But, at the same time, such flexibility leads to great complexity when it comes to evaluating the insurer’s liability.
Learn more about the study.