Description: The OCI-Solution of IASB’s IFRS 4 Phase II requires that interest expense for the Profit and Loss (P&L) calculation be based on a yield curve instead of a flat rate locked-in at policy issue. The article has a discussion of analysis of the impact from locking in the yield curve on the IFRS 4 profit pattern as well as general conclusions reached.

Description: Perspectives on the Valuation Manual.

Description: This paper discusses the martingale approach for pricing American-type options without an expiry date. These options include the perpetual American put option and the perpetual maximum option in one stock case. The word “perpetual” means that the option has no expiry date. A main tool in this approach is the principle of smooth pasting.

Description: This paper develops a new technique, which allows the analyst to maximally use all thte historical interest rate information available in forecasting interest rates. Interest rates' daily change do not follow a stationary random process over long time periods. Instead, the process is comprised of stationary periods, each a few years long, with relatively short transitional periods between different stationary periods.

Description: A new statistical approach is presented for calculation of Incurred But Not yet Paid, IBNP, claim amounts. It is based on two new variant methods, the Simple Projected Paid Lag method and the Regressed Projected Paid Lag method.

Description: This paper presents a random selection method with the Monte Carlo simulation technique in the estimation of loss reserves. The future loss development factors are randomly selected from a weighted empirical distribution of observed loss development factors. This nonparametric approach provides an estimate of the distribution of total loss reserve.

Description: Introduction to the topics of the issue; and anecdote regarding the value classical versus newer techniques.

Description: Matrix decomposition techniques are used to find main features of a dataset. These features can be used to describe the data or to find clusters of objects. The decompositions have problems when the matrices have missing data or are from different exposures. This article examines the issue and some papers dealing with it.

Description: Discussion of insolvency provision added to reinsurance agreements to insure the continuation of benefits during HMO insolvency, Issue No. 39.

Description: Article discusses what happends when an insurer fails, role of the guaranty association and what is an ideal insolvency. From Health Section News, August 2000, Issue No. 38.