A segmented analysis of the underwriting reserve and its cover in a pension insurance company

Tiivistelmä

Artikkeli käsittelee suomalaisen työeläkevakuutusyhtiön vastuuvelan ja sen katteen keston mukaan segmentoitua analyysia ja siihen liittyvää mallia.

Abstract

 In a pension insurance company the demands on solvency,liquidity and yeld impose the following criteria on the investment activities depending on their duration: long-term investments - minimize the risks, medium-term investments - maintain the balance of the premium level, short-term investments - optimize the yeld. The level of premiums is a recurrent problem in a statutory pensions scheme based partly on funding and partly on a pay-as-you-go system. The premiums are fixed annually as a result of negotiations between the labor market organisations and the supevising authorities . Pension benefits and age limits are likewise subject to a continious process of revision. The above-described method could be summed up as a very practical system, which nevertheless requires good actuarial knowledge and which provides those engaged in investment activities with rapid information of the future development of the underwriting reserve. It facilitates investments decisions and bridges the gap between investment experts and actuaries, a gap that has traditionally been quite broad in Finland.