Report On Pricing Using Market Consistent Embedded Value (MCEV)

Research Projects – Life Insurance
The Product Development Section and Committee on Life Insurance Research are pleased to make available a new research report that explains the concept and construction of market-consistent embedded value (MCEV), and explores the methodology by which one might calculate MCEV, or the market-consistent value of new business (MCVNB), in the pricing process. Authored by Novian Junus, David Wang and Zohair Motiwalla of Milliman Inc., the report includes discussions of profit/risk measures and also compares through case studies how some U.S. products would fare under the MCVNB/risk-neutral paradigm, in contrast to the standard real-world pricing approach


Report On Pricing Using Market Consistent Embedded Value (MCEV)

Thank You

The sponsors would like to thank the following individuals who served on the Project Oversight Group:
Mitchell Katcher, Chair
Renee Cassel
Chris Conrad
Christina Goodrich
Michael Kula
Jan Schuh, SOA Sr. Research Administrator
Ronora Stryker, SOA Research Actuary


If you have questions or comments on this research, please contact Ronora Stryker, SOA Research Actuary, at