The COVID-19 pandemic has taken a huge toll on people and economies alike. Governments and central banks worldwide have introduced a slew of fiscal measures to infuse liquidity and stability in the market. However, in spite of these measures, the financial markets are expected to remain highly volatile for a significant duration, likely to worsen further due to lowering of interest rates and increasing credit spread gaps as well as risk of mortgage defaults. Insurers therefore need to assess the impact on their solvency margins and IRRs, and re-assess the assumptions around mortality and morbidity rates, operational and financial costs, claims and losses, and so on. Actuaries must review existing strategies and products and construct new ones to handle evolving risks and their interactions to be able to better model assets and liabilities as well as analyze asset and capital adequacies Moreover, insurers will have to perform strong scenario testing to identify k...
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