Industrialised Financial Reporting Working Party

The Industrialising Financial Reporting Working Party has been developing a generalised methodology for analysing the profitability of an insurance company over a period, in terms of the risk categories used by the risk management function.  The methodology allows the impacts of the risk factors to be quantified simultaneously, rather than in a fixed order as with a traditional analysis of surplus.  The methodology can also be used to perform instantaneous stresses for capital calculations.  This session will cover the application of the methodology to annuity business in life insurance.