Valuation Technique Paper No. 9 - Valuation of Single Premium Annuities

This standard defines the Canadian Institute of Actuaries’ accepted actuarial practice for the valuation of products where the assets supporting the liabilities are large in comparison with the earnings. The paper outlines a technique, the cash flow valuation method, or CFVM, that can be used to determine the aggregate policy liability. Products considered within the scope of this paper include: group guaranteed investment contracts, group guaranteed deposit funds, single premium deferred annuities, flexible premium deferred annuities, registered retirement investment funds, group or individual vested and deferred annuities, court structured settlements and disability pension income. KEYWORDS: Canadian Issues, Cash Flow Studies, Econometric Modeling, Exam Part 7/7C, Risk Margin, Standard of Practice.