COVID-19 has presented a range of issues for insurers. While working practices, investment market volatility and the economic outlook may be the most pressing concerns, attention must also be given to the need to set assumptions during such uncertain times. The impact of COVID-19 on health and the economy is so wide-reaching, that there is an argument for review of virtually every assumption and subjective area of the balance sheet and capital calculations in the years ahead.
How do we start to move on that journey when we are still faced with so little clarity and much uncertainty? The current situation is so dramatic that insurers may conclude, that for certain parameters, there are indications that previous assumptions are no longer appropriate. However, at the same time they may also conclude that, as yet, there is insufficient data for a credible update to the assumption. This leaves a dilemma. The presenters look at how actuaries might address the situation. In particular they consider how the uncertainty might play out, what options there are for assumption setting and how these might be used depending on how experience emerges.
At the conclusion of the session, attendees will be able to:
• Have a better understanding of the current situation
• Be able to consider the options for assumption setting an how they might be used
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