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New Methods of Approximate Valuation

Published online by Cambridge University Press:  07 November 2014

Samuel Robert Hellig
Affiliation:
Standard Life Assurance Company
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Synopsis

The Paper shows :–

(a) That if valuations are made using assurance factors taken to two places of decimals only, it is possible by means of a simple modification to bring out results varying inappreciably from those obtained by the standard methods and that such valuations can be made entirely by summation.

(b) That the process, which enables multiplications to be dispensed with, can be extended so as to be applicable to valuations by factors taken to three places of decimals.

It is also shown that a relation found to exist between net premiums at different rates of interest can be employed, in conjunction with either of the foregoing methods, to estimate the effect of changes in the valuation rate of interest.

Type
Research Article
Copyright
Copyright © Institute and Faculty of Actuaries 1938

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References

page 178 note † The three paragraphs following have been re-cast since the Paper was read in view of the remarks of Messrs. McGregor and Lidstone.

page 181 note * But see Mr. Lidstone's suggestion as amplified by the author, pp. 205, 209.

page 205 note * Matter in [ ] has been added since the discussion of the Paper.