COMPUTATION OF BONUS IN MULTI-STATE LIFE INSURANCE

Abstract We consider computation of market values bonus payments in multi-state with-profit life insurance. The scheme consists additional benefits bought according to a dividend strategy that depends on the past realization financial risk, current individual insurance number currently held, and so-called portfolio-wide means describing shape business. formulate numerical procedures efficiently combine simulation risk with classic methods for outstanding risk. Special attention is given case where only Methods results are illustrated via example.