Q. What factors influence interest rate risk?

View solution

Q. How are interest rate models utilized in insurance?

View solution

Q. What are some of the factors considered for deciding interest rate assumptions?

View solution

Q. How does the determination of interest rates vary with the type of insurance product selected?

View solution

Q. What does interest rate refer to?

View solution

Q. Why is interest rate assumption particularly important for certain types of insurance products?

View solution

Q. How many steps are typically involved in the assumption setting process?

View solution

Q. What are the main factors considered in calculating life insurance premiums?

View solution

Q. What is the purpose of applying stochastic interest rate approaches for hedging purposes?

View solution

Q. Why might traditional immunization methodology not be suitable for measuring interest rate risk with innovative insurance products?

View solution

Q. What does convexity measure in the context of assets and liabilities?

View solution

Q. How is duration defined in the context of assets and liabilities?

View solution

Q. What is the purpose of immunization techniques in managing traditional life insurance products?

View solution

Q. What is the consequence of higher leverage for insurance companies?

View solution

Q. How does rising interest rates affect insurers whose duration of assets exceeds that of their liabilities?

View solution

Q. What measures do insurers take to mitigate interest rate risk?

View solution

Q. How can a prolonged low interest rate environment impact insurance companies?

View solution

Q. What is disintermediation risk in the context of insurance?

View solution

Q. How do insurance companies mitigate the risk of interest rate fluctuations affecting their investments and liabilities?

View solution

Q. In response to low interest rates, what strategy do insurance companies often employ to attract buyers?

View solution