The use of Monte Carlo simulation of mortality experience in estimating the cost of profit sharing arrangements for group life policies

Louis Rossouw~Peter Temple, Afrique Du Sud

This paper expands previous work that has been done on a methodology for simulating the mortality experience of employer based group benefit policies using Monte Carlo simulation with specific focus on profit sharing arrangements. We show that results of these simulations could be simplified to a formula that may be applied in practical situations. We investigate the impact of varying assumptions and we also suggest other applications for this methodology.
Date: 1 June - Time: 11:00 to 12:30 - Room: 341
Theme: 9.A. Various topics