Financial Pricing Models for Property-Casualty Insurance Products: Income Recognition and Performance Measurement

Abstract
A financial pricing model determines premium rates that provide an adequate return on invested capital. The pricing of the policy depends on cash flows and capital requirements, both of which are external constraints. They do not depend on the accounting system used for performance measurement. Prospective pricing is not necessarily concerned with the patter of profit recognition, which is an internal accounting construct.
Volume
Summer
Page
165-212
Year
2003
Categories
Actuarial Applications and Methodologies
Accounting and Reporting
Fair Value
Actuarial Applications and Methodologies
Accounting and Reporting
GAAP
Financial and Statistical Methods
Risk Pricing and Risk Evaluation Models
ROE
Publications
Casualty Actuarial Society E-Forum
Authors
Sholom Feldblum
Neeza Thandi