Description: French language version of Risk Management, August 2014 newsletter.

Description: This article discusses the use of mortality catastrophe bonds as a risk mitigation tool.

Description: Article discusses possible effects of negative interest rates on product development, risk management, investment management and in-force management.

Description: Complete issue of the August 2014 Risk Management newsletter.

Description: This article discusses reserving issues for life insurance products with limited level premium guarantees or no-lapse guarantees, and capital markets solutions as an alternative to traditional reinsurance for relief from redundant reserve strain.

Description: Provides summary of qualitative factors in the current fiscal, economic and political environment that could lead to higher inflation.

Description: Editors discuss the articles in this issue.

Description: This paper develops a conceptually rigorous formulation of the cost of capital method for estimating margins for mortality, lapse, expense and other forms of underwriting risk.

Description: Describes outlook for inflation, generally higher in the US and lower in Japan/Europe. Enumerates macroeconomic drivers of inflation, and comments on the pace of inflation-linked debt issuance globally.

Description: This article pertains to the optimal asset allocation of surplus from an insurance company model. The insurance company is represented by a compound Poisson risk process which is perturbed by diffusion and has investments. The investments are in both risky and risk-free types of assets similar to stocks/real estate and bonds. The insurance company can borrow at a constant interest rate in the event of a negative surplus. Numerical analysis appears to show that an optimal asset allocation range can be estimated for certain parameters and compared with insurance data. Using a conservative method to minimize the probability of ruin, a reasonable optimal asset allocation range for a typical insurance company is about 4.5 to 8.2 percent invested in risky stock/real estate assets. An inequality and the exact solution are obtained for the pure diffusion equation. In addition, the asymptotic form of the ruin probability is shown to be a power function.