Keywords

insurance liability valuation, financial valuation models, securitization

Abstract

Financial valuation models can be applied to insurance- related claims. In particular, these models are being employed to calculate the market value of insurance liabilities. The goal of this paper is to introduce the various approaches to valuation that are used in the finance literature and show how the valuation of insurance liabilities fits into the financial valuation framework. The theory suggests that securitization of insurance liabilities may lead to better market value calculations.

Original Publication Citation

Discussion of “Two Paradigms for the Market Value of Liabilities.” North American Actuarial Journal, October 1997.

Document Type

Peer-Reviewed Article

Publication Date

1997

Publisher

North American Actuarial Journal

Language

English

College

Marriott School of Business

Department

Finance

University Standing at Time of Publication

Full Professor

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