Stochastic asset liability modelling

Document description

Notwithstanding the title of the Working Party, it was felt that work in this area as far as actuaries are concerned should not be confined to stochastic modelling. There were not an insignificant number of cases or even possibly majority where a deterministic scenario approach was more appropriate. It was often much easier to evaluate models in terms of the physical world in the context of the deterministic scenario and also could often be easier for the actuary to explain to the end user.