Financial Models Of Insurance Solvency

Download Financial Models Of Insurance Solvency full books in PDF, epub, and Kindle. Read online Financial Models Of Insurance Solvency ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!

Financial Models of Insurance Solvency

Author : J. David Cummins
Publisher : Springer Science & Business Media
ISBN 13 : 9400925069
Total Pages : 380 pages
Book Rating : 4.4/5 (9 download)

DOWNLOAD NOW!

Book Synopsis Financial Models of Insurance Solvency by : J. David Cummins

Download or read book Financial Models of Insurance Solvency written by J. David Cummins and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 380 pages. Available in PDF, EPUB and Kindle. Book excerpt: The First International Conference on Insurance Solvency was held at the Wharton School, University of Pennsylvania from June 18th through June 20th, 1986. The conference was the inaugural event for Wharton's Center for Research on Risk and Insurance. In atten dance were thirty-nine representatives from Australia, Canada, France, Germany, Israel, the United Kingdom, and the United States. The papers presented at the Conference are published in two volumes, this book and a companion volume, Classical Insurance Solvency Theory, J. D. Cummins and R. A. Derrig, eds. (Norwell, MA: Kluwer Academic Publishers, 1988). The first volume presented two papers reflecting important advances in actuarial solvency theory. The current volume goes beyond the actuarial approach to encom pass papers applying the insights and techniques of financial economics. The papers fall into two groups. The first group con sists of papers that adopt an essentially actuarial or statistical ap proach to solvency modelling. These papers represent methodology advances over prior efforts at operational modelling of insurance companies. The emphasis is on cash flow analysis and many of the models incorporate investment income, inflation, taxation, and other economic variables. The papers in second group bring financial economics to bear on various aspects of solvency analysis. These papers discuss insurance applications of asset pricing models, capital structure theory, and the economic theory of agency.

Financial Modeling, Actuarial Valuation and Solvency in Insurance

Author : Mario V. Wüthrich
Publisher : Springer Science & Business Media
ISBN 13 : 3642313922
Total Pages : 438 pages
Book Rating : 4.6/5 (423 download)

DOWNLOAD NOW!

Book Synopsis Financial Modeling, Actuarial Valuation and Solvency in Insurance by : Mario V. Wüthrich

Download or read book Financial Modeling, Actuarial Valuation and Solvency in Insurance written by Mario V. Wüthrich and published by Springer Science & Business Media. This book was released on 2013-04-04 with total page 438 pages. Available in PDF, EPUB and Kindle. Book excerpt: Risk management for financial institutions is one of the key topics the financial industry has to deal with. The present volume is a mathematically rigorous text on solvency modeling. Currently, there are many new developments in this area in the financial and insurance industry (Basel III and Solvency II), but none of these developments provides a fully consistent and comprehensive framework for the analysis of solvency questions. Merz and Wüthrich combine ideas from financial mathematics (no-arbitrage theory, equivalent martingale measure), actuarial sciences (insurance claims modeling, cash flow valuation) and economic theory (risk aversion, probability distortion) to provide a fully consistent framework. Within this framework they then study solvency questions in incomplete markets, analyze hedging risks, and study asset-and-liability management questions, as well as issues like the limited liability options, dividend to shareholder questions, the role of re-insurance, etc. This work embeds the solvency discussion (and long-term liabilities) into a scientific framework and is intended for researchers as well as practitioners in the financial and actuarial industry, especially those in charge of internal risk management systems. Readers should have a good background in probability theory and statistics, and should be familiar with popular distributions, stochastic processes, martingales, etc.

Solvency II in the Insurance Industry

Author : Maria Heep-Altiner
Publisher : Springer
ISBN 13 : 3319770608
Total Pages : 219 pages
Book Rating : 4.3/5 (197 download)

DOWNLOAD NOW!

Book Synopsis Solvency II in the Insurance Industry by : Maria Heep-Altiner

Download or read book Solvency II in the Insurance Industry written by Maria Heep-Altiner and published by Springer. This book was released on 2019-02-22 with total page 219 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book illustrates the EU-wide Solvency II framework for the insurance industry, which was implemented on January 1, 2016, after a long project phase. Analogous to the system for banks, it is based on three pillars and the authors analyze the complete framework pillar by pillar with a consistent data model for a non-life insurer, which was developed by the Research Group Financial & Actuarial Risk Management (FaRis) at the Institute for Insurance Studies of the TH Köln - University of Applied Sciences. The book leverages the long-standing and close cooperation between the University of Limerick (Ireland) and the Institute for Insurance Studies at TH Köln - University of Applied Sciences (Germany).

Solvency

Author : Arne Sandstrom
Publisher : CRC Press
ISBN 13 : 142003488X
Total Pages : 449 pages
Book Rating : 4.4/5 (2 download)

DOWNLOAD NOW!

Book Synopsis Solvency by : Arne Sandstrom

Download or read book Solvency written by Arne Sandstrom and published by CRC Press. This book was released on 2005-09-19 with total page 449 pages. Available in PDF, EPUB and Kindle. Book excerpt: Until now there were no published analyses of the recent solvency work conducted in Europe, specifically the risk categories proposed by the International Actuarial Association (IAA). Answering the insurance industry's demand in the wake of the EU Solvency II project, Solvency: Models, Assessment and Regulation provides a concrete summary and revie

On the Measurement of Solvency of Insurance Companies

Author : Craig Thorburn
Publisher : World Bank Publications
ISBN 13 :
Total Pages : 45 pages
Book Rating : 4./5 ( download)

DOWNLOAD NOW!

Book Synopsis On the Measurement of Solvency of Insurance Companies by : Craig Thorburn

Download or read book On the Measurement of Solvency of Insurance Companies written by Craig Thorburn and published by World Bank Publications. This book was released on 2004 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Modelling in Life Insurance – A Management Perspective

Author : Jean-Paul Laurent
Publisher : Springer
ISBN 13 : 3319297767
Total Pages : 263 pages
Book Rating : 4.3/5 (192 download)

DOWNLOAD NOW!

Book Synopsis Modelling in Life Insurance – A Management Perspective by : Jean-Paul Laurent

Download or read book Modelling in Life Insurance – A Management Perspective written by Jean-Paul Laurent and published by Springer. This book was released on 2016-05-02 with total page 263 pages. Available in PDF, EPUB and Kindle. Book excerpt: Focusing on life insurance and pensions, this book addresses various aspects of modelling in modern insurance: insurance liabilities; asset-liability management; securitization, hedging, and investment strategies. With contributions from internationally renowned academics in actuarial science, finance, and management science and key people in major life insurance and reinsurance companies, there is expert coverage of a wide range of topics, for example: models in life insurance and their roles in decision making; an account of the contemporary history of insurance and life insurance mathematics; choice, calibration, and evaluation of models; documentation and quality checks of data; new insurance regulations and accounting rules; cash flow projection models; economic scenario generators; model uncertainty and model risk; model-based decision-making at line management level; models and behaviour of stakeholders. With author profiles ranging from highly specialized model builders to decision makers at chief executive level, this book should prove a useful resource to students and academics of actuarial science as well as practitioners.

Insurance Planning Models: Price Competition And Regulation Of Financial Stability

Author : Vsevolod Malinovskii
Publisher : World Scientific
ISBN 13 : 9811204675
Total Pages : 355 pages
Book Rating : 4.8/5 (112 download)

DOWNLOAD NOW!

Book Synopsis Insurance Planning Models: Price Competition And Regulation Of Financial Stability by : Vsevolod Malinovskii

Download or read book Insurance Planning Models: Price Competition And Regulation Of Financial Stability written by Vsevolod Malinovskii and published by World Scientific. This book was released on 2021-08-13 with total page 355 pages. Available in PDF, EPUB and Kindle. Book excerpt: Insurance Planning Models: Price Competition and Regulation of Financial Stability is an exciting new book that takes readers inside the secrets of internal organization of the modern general insurance business. Many people know that it is subject to intensive state regulation, whereby the purpose is to maintain long-term efficiency, honesty, security and stability in the interest and for the protection of policyholders. However, except for knowing that the insurance system is regulated by intensive calculations, that the insurance companies have different positions on the market, that they pursue different goals and even compete with each other, and that one of the tools of this competition is the policy price, not so many people know how to achieve these deserving goals.In developing quantitative recommendations and directives to competing insurers, regulators rely on certain models. In the 1900s, such models were proposed. They were useful for an insight into the probabilistic nature of the insurance process, but not for direct application to practically meaningful problems of insurance regulation. This book is your guide to the rigorously constructed long-term dynamic models with the aim to improve regulatory methods and develop quantitative recommendations using both analytical calculations and computer simulation. It is addressed to a wide range of readers, including interested policyholders, economists whose interest lies in insurance management and regulation, and mathematicians wishing to expand the scope of application for their knowledge.This book is devoted to certain issues that are either not sufficiently presented, or even absent in the literature. It is an attempt to penetrate from the standpoint of mathematical modeling into the goals which face insurance regulators and contending company managers for preventing insolvencies, or even crises pertinent to badly regulated complex reflexive systems.It offers rigorous probabilistic models of long-term insurance business based on the laws of mass phenomena. They mitigate deficiencies of oversimplified risk models. The book presents advances in probabilistic techniques designed to seek quantitative, rather than qualitative, directives and recommendations regarding safe control aiming to achieve different business goals.

Executive's Guide to Solvency II

Author : David Buckham
Publisher : John Wiley & Sons
ISBN 13 : 9780470925706
Total Pages : 208 pages
Book Rating : 4.9/5 (257 download)

DOWNLOAD NOW!

Book Synopsis Executive's Guide to Solvency II by : David Buckham

Download or read book Executive's Guide to Solvency II written by David Buckham and published by John Wiley & Sons. This book was released on 2010-09-23 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt: A straightforward guide to the evolution, benefits, and implementation of Solvency II Providing a guide to the evolution, practice, benefits, and implementation of Solvency II, Executive′s Guide to Solvency II deftly covers this major European regulation which ensures that insurers can meet their risk–based liabilities over a one–year period to a 99.5% certainty. Part of the Wiley and SAS Business series, this book will guide you through Solvency II, especially if you need to understand the subtleties of Solvency II and risk–based capital in basic business language. Among the topics covered in this essential book are: Background to Solvency II Learning from the Basel Approach The Economic Balance Sheet Internal Models People, Process, and Technology Business Benefits of Solvency II Executive′s Guide to Solvency II has as its aim an explanation for executives, practitioners, consultants, and others interested in the Solvency II process and the implications thereof, to understand how and why the directive originated, what its goals are, and what some of the complexities are. There is an emphasis on what in practice should be leveraged upon to achieve implementation, specifically data, processes, and systems, as well as recognition of the close alignment demanded between actuaries, the risk department, IT, and the business itself.

Macroprudential Solvency Stress Testing of the Insurance Sector

Author : Mr.Andreas A. Jobst
Publisher : International Monetary Fund
ISBN 13 : 149832455X
Total Pages : 84 pages
Book Rating : 4.4/5 (983 download)

DOWNLOAD NOW!

Book Synopsis Macroprudential Solvency Stress Testing of the Insurance Sector by : Mr.Andreas A. Jobst

Download or read book Macroprudential Solvency Stress Testing of the Insurance Sector written by Mr.Andreas A. Jobst and published by International Monetary Fund. This book was released on 2014-07-22 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the last decade, stress testing has become a central aspect of the Fund’s bilateral and multilateral surveillance work. Recently, more emphasis has also been placed on the role of insurance for financial stability analysis. This paper reviews the current state of system-wide solvency stress tests for insurance based on a comparative review of national practices and the experiences from Fund’s FSAP program with the aim of providing practical guidelines for the coherent and consistent implementation of such exercises. The paper also offers recommendations on improving the current insurance stress testing approaches and presentation of results.

Macroprudential Solvency Stress Testing of the Insurance Sector

Author : Mr.Andreas A. Jobst
Publisher : International Monetary Fund
ISBN 13 : 148434636X
Total Pages : 84 pages
Book Rating : 4.4/5 (843 download)

DOWNLOAD NOW!

Book Synopsis Macroprudential Solvency Stress Testing of the Insurance Sector by : Mr.Andreas A. Jobst

Market-Consistent Actuarial Valuation

Author : Mario V. Wüthrich
Publisher : Springer Science & Business Media
ISBN 13 : 3642148522
Total Pages : 164 pages
Book Rating : 4.6/5 (421 download)

DOWNLOAD NOW!

Book Synopsis Market-Consistent Actuarial Valuation by : Mario V. Wüthrich

Download or read book Market-Consistent Actuarial Valuation written by Mario V. Wüthrich and published by Springer Science & Business Media. This book was released on 2010-09-02 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is a challenging task to read the balance sheet of an insurance company. This derives from the fact that different positions are often measured by different yardsticks. Assets, for example, are mostly valued at market prices whereas liabilities are often measured by established actuarial methods. However, there is a general agreement that the balance sheet of an insurance company should be measured in a consistent way. Market-Consistent Actuarial Valuation presents powerful methods to measure liabilities and assets in a consistent way. The mathematical framework that leads to market-consistent values for insurance liabilities is explained in detail by the authors. Topics covered are stochastic discounting with deflators, valuation portfolio in life and non-life insurance, probability distortions, asset and liability management, financial risks, insurance technical risks, and solvency.

The Valuation of Financial Companies

Author : Mario Massari
Publisher : John Wiley & Sons
ISBN 13 : 1118617339
Total Pages : 260 pages
Book Rating : 4.1/5 (186 download)

DOWNLOAD NOW!

Book Synopsis The Valuation of Financial Companies by : Mario Massari

Download or read book The Valuation of Financial Companies written by Mario Massari and published by John Wiley & Sons. This book was released on 2014-03-31 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents the main valuation approaches that can be used to value financial institutions. By sketching 1) the different business models of banks (both commercial and investment banks) and insurance companies (life, property and casualty and reinsurance); 2) the structure and peculiarities of financial institutions’ reporting and financial statements; and 3) the main features of regulatory capital frameworks for banking and insurance (ie Basel III, Solvency II), the book addresses why such elements make the valuation of financial institutions different from the valuation of non-financial companies. The book then features the valuation models that can be used to determine the value of banks and insurance companies including the Discounted Cash Flow, Dividend Discount Model, and Residual Income Model (with the appropriate estimation techniques for the cost of capital and cash flow in financial industries). The main techniques to perform the relative valuation of financial institutions are then presented: along the traditional multiples (P/E, P/BV, P/TBV, P/NAV), the multiples based on industry-specific value drivers are discussed (for example, P/Pre Provision Profit, P/Deposits, P/Premiums, P/Number of branches). Further valuation tools such as the “Value Maps” or the “Warranted Equity Method” will be explained and discussed. The closing section of the book will briefly focus on the valuation of specific financial companies/vehicles such as closed-end funds, private equity funds, leasing companies, etc.

Solvency II. A comparison of the standard model with internal models to calculate the Solvency Capital Requirements (SCR)

Author : Shahrok Shedari
Publisher : GRIN Verlag
ISBN 13 : 3668298483
Total Pages : 67 pages
Book Rating : 4.6/5 (682 download)

DOWNLOAD NOW!

Book Synopsis Solvency II. A comparison of the standard model with internal models to calculate the Solvency Capital Requirements (SCR) by : Shahrok Shedari

Download or read book Solvency II. A comparison of the standard model with internal models to calculate the Solvency Capital Requirements (SCR) written by Shahrok Shedari and published by GRIN Verlag. This book was released on 2016-09-14 with total page 67 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2015 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: -, University of Frankfurt (Main), language: English, abstract: The Solvency II Directive, which will come into effect from January 2016, is a very important project of the European insurance industry. It will set new rules to the European insurance business. Because of being the biggest insurance market of the world - European insurers generate more than € 1,100 bn p.a. and invest around € 8,600 bn in the economy - the new directive will also act as a signal for the worldwide regulation of insurance companies. So it is also intended to have a framework, which is in line with the international developments in solvency, risk management, supervisory and accounting. After 15 years of planning and development the regulation is now implemented step-by-step. The aim of the EU Solvency II Directive is to prevent insurers from becoming insolvent. For this purpose, among other things, a uniform capital adequacy for all European insurance companies is provided. Core of the proposed amendments with respect to the investment is that eligible capital at any time must be higher than the calculated risk. One of the main parts of the Solvency II project is the determination of the capital requirements. The idea is to asses both the assets and the liabilities with the aim of a more realistic modelling and assessments of the risk to which an insurer may be exposed to. The solvency capital requirements (SCR) for an one year horizon is then calculated on the 99.5% Value-at-Risk. The determined SCR answers the question how much capital is required today to cover losses, which may occur during the next 12 months, with a probability of 99.5%. For the calculation of the SCR the insurer can choose between standard model, internal models or a hybrid model. Since internal models allow a better assessment of the companies risk than the standard model, insurers are encouraged to implement such stochastic internal models. But the implementation of internal model is as well costly as sophisticated. That is why the European Commission with support of the Committee of Insurance and Occupational Pension Supervisors (CEIOPS) has established a scenario based standard model. The standard model defines in a first step different sub modules (e.g. market risk, operational risk) for which the capital requirements are calculated. The different SCR’s are “then aggregated under the assumption of a multivariate normal distribution with prespecified correlation matrices to allow for diversification effects”. [...]

Life Insurance Risk Management Essentials

Author : Michael Koller
Publisher : Springer Science & Business Media
ISBN 13 : 3642207219
Total Pages : 345 pages
Book Rating : 4.6/5 (422 download)

DOWNLOAD NOW!

Book Synopsis Life Insurance Risk Management Essentials by : Michael Koller

Download or read book Life Insurance Risk Management Essentials written by Michael Koller and published by Springer Science & Business Media. This book was released on 2011-05-04 with total page 345 pages. Available in PDF, EPUB and Kindle. Book excerpt: The aim of the book is to provide an overview of risk management in life insurance companies. The focus is twofold: (1) to provide a broad view of the different topics needed for risk management and (2) to provide the necessary tools and techniques to concretely apply them in practice. Much emphasis has been put into the presentation of the book so that it presents the theory in a simple but sound manner. The first chapters deal with valuation concepts which are defined and analysed, the emphasis is on understanding the risks in corresponding assets and liabilities such as bonds, shares and also insurance liabilities. In the following chapters risk appetite and key insurance processes and their risks are presented and analysed. This more general treatment is followed by chapters describing asset risks, insurance risks and operational risks - the application of models and reporting of the corresponding risks is central. Next, the risks of insurance companies and of special insurance products are looked at. The aim is to show the intrinsic risks in some particular products and the way they can be analysed. The book finishes with emerging risks and risk management from a regulatory point of view, the standard model of Solvency II and the Swiss Solvency Test are analysed and explained. The book has several mathematical appendices which deal with the basic mathematical tools, e.g. probability theory, stochastic processes, Markov chains and a stochastic life insurance model based on Markov chains. Moreover, the appendices look at the mathematical formulation of abstract valuation concepts such as replicating portfolios, state space deflators, arbitrage free pricing and the valuation of unit linked products with guarantees. The various concepts in the book are supported by tables and figures.

Innovations in Quantitative Risk Management

Author : Kathrin Glau
Publisher : Springer
ISBN 13 : 331909114X
Total Pages : 434 pages
Book Rating : 4.3/5 (19 download)

DOWNLOAD NOW!

Book Synopsis Innovations in Quantitative Risk Management by : Kathrin Glau

Download or read book Innovations in Quantitative Risk Management written by Kathrin Glau and published by Springer. This book was released on 2015-01-09 with total page 434 pages. Available in PDF, EPUB and Kindle. Book excerpt: Quantitative models are omnipresent –but often controversially discussed– in todays risk management practice. New regulations, innovative financial products, and advances in valuation techniques provide a continuous flow of challenging problems for financial engineers and risk managers alike. Designing a sound stochastic model requires finding a careful balance between parsimonious model assumptions, mathematical viability, and interpretability of the output. Moreover, data requirements and the end-user training are to be considered as well. The KPMG Center of Excellence in Risk Management conference Risk Management Reloaded and this proceedings volume contribute to bridging the gap between academia –providing methodological advances– and practice –having a firm understanding of the economic conditions in which a given model is used. Discussed fields of application range from asset management, credit risk, and energy to risk management issues in insurance. Methodologically, dependence modeling, multiple-curve interest rate-models, and model risk are addressed. Finally, regulatory developments and possible limits of mathematical modeling are discussed.

The Handbook of Insurance-Linked Securities

Author : Pauline Barrieu
Publisher : John Wiley & Sons
ISBN 13 : 0470685085
Total Pages : 612 pages
Book Rating : 4.4/5 (76 download)

DOWNLOAD NOW!

Book Synopsis The Handbook of Insurance-Linked Securities by : Pauline Barrieu

Download or read book The Handbook of Insurance-Linked Securities written by Pauline Barrieu and published by John Wiley & Sons. This book was released on 2010-06-15 with total page 612 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Luca Albertini and Pauline Barrieu are to be congratulated on this volume. Written in a period where structured projects in finance are having a difficult time, it is worthwhile to return to the cradle of securitisation: insurance. Spread out over three parts (life, non- life, and tax and regulatory issues) the 26 chapters, written mainly by practitioners, give an excellent overview of this challenging field of modern insurance. Methodology and examples nicely go hand in hand. The overall slant being towards actual analyses of concrete products. No doubt this book will become a milestone going forward for actuarial students, researchers, regulators and practitioners alike." —Paul Embrechts, Professor of Mathematics and Director of RiskLab, ETH Zurich The convergence of insurance with the capital markets has opened up an alternative channel for insurers to transfer risk, raise capital and optimize their regulatory reserves as well as offering institutions a source of relatively liquid investment with limited correlation with other exposures. One of the financial instruments allowing for the cession of insurance-related risks to the capital markets is Insurance-Linked Securities (ILS). This book provides hands-on information essential for market participants, drawing on the insights and expertise of an impressive team of international market players, representing the various aspects and perspectives of this growing sector. The book presents the state of the art in Insurance-Linked Securitization, by exploring the various roles for the different parties involved in the transactions, the motivation for the transaction sponsors, the potential inherent pitfalls, the latest developments and transaction structures and the key challenges faced by the market. The book is organized into parts, each covering a specific topic or sector of the market. After a general overview of the ILS market, the Insurance-Linked Securitization process is studied in detail. A distinction is made between non-life and life securitization, due to the specificities of each sector. The process and all the actors involved are identified and considered in a comprehensive and systematic way. The concepts are first looked at in a general way, before the analysis of relevant case studies where the ILS technology is applied. Particular focus is given to: the key stages in both non-life and life securitizations, including the general features of the transactions, the cedant's perspectives, the legal issues, the rating methodologies, the choice of an appropriate trigger and the risk modeling, the particular challenges related to longevity securitization, the investor's perspective and the question of the management of a portfolio of ILS, the general issues related to insurance-linked securitization, such as accounting and tax issues, regulatory issues and solvency capital requirements. The book is accompanied by a website www.wiley.com/go/albertini_barrieu_ILS which will feature updates and additions to the various contributions to follow market developments.

The Fair Value of Insurance Business

Author : Irwin T. Vanderhoof
Publisher : Springer Science & Business Media
ISBN 13 : 1461546230
Total Pages : 327 pages
Book Rating : 4.4/5 (615 download)

DOWNLOAD NOW!

Book Synopsis The Fair Value of Insurance Business by : Irwin T. Vanderhoof

Download or read book The Fair Value of Insurance Business written by Irwin T. Vanderhoof and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 327 pages. Available in PDF, EPUB and Kindle. Book excerpt: Insurance companies, as well as banks and thrift institutions, have traditionally reported assets and liabilities on the basis of their amortized cost, or book value. But following the turmoil in securities markets due to highly volatile interest rate fluctuations in the 1980s and the early 1990s, and problems caused by inadequate liquidity, in the mid-1990s the Financial Accounting Standards Board (FASB) issued a new ruling calling for financial intermediaries to report the fair, or market, value of most assets. Called FAS 115, this new standard is the first step in the eventual change to valuing all the assets and liabilities belonging to financial intermediaries under the fair value accounting method. Thus, these changes will pose tremendous future implications for three key business measures of a financial intermediary: Solvency: if the fair values of assets and liabilities are out-of-step, then healthy companies may report negative net worth and insolvent companies may appear to be in sound financial condition. Reported Earnings: if the fair values of assets and liabilities are out of step, then reported earnings will not accurately represent the financial operations of the company. Risk Management: FASB recently postponed the implementation of its new rules on accounting for the use of derivatives instruments. However, if the final set of rules for figuring the fair value of derivatives is not carefully crafted, it may be possible that companies prudently hedging their risks are subject to penalties in their financial reports, while companies taking greater risks appear to have less volatile financial performance. Compared to banks and other financial intermediaries, life insurance companies have the longest term and most complex liabilities, and hence the new FASB requirement poses the most severe challenges to the life insurance industry. The lessons learned from the debate among life insurance academics and professionals about how respond to the fair value reporting rule will be instructive to their counterparts in other sectors of the insurance industry, as well as those involved with other financial institutions. Of particular note are the two papers which comprise Part III. The first provides examples of the fair valuing of annuity contracts, while the second offers examples of the fair valuing of term insurance products. As the papers collected in The Fair Value of Insurance Business extend and update some of the issues treated in a previous Salomon Center conference volume, The Fair Value of Insurance Liabilities, this new volume may be viewed as a companion to the earlier book.