A12: Measure for measure: value creation metrics in life - how to define return and reward performance

Document description

How do you really measure value creation?  What should be measured: risk, return, change in expectations, past and/or future?  For Life risks and products, the economics are often complex, as are the measures.    We discuss a variety of well-known acronyms: RoE or RoRAC, PVI/PVC, DCF RoE, VNB, EVC and MCEV looking specifically at their pros/cons.  We will show how to effectively use these to reward business production or in-force management.  We will investigate the solutions found in industry and present feedback.