The Impact of additional Insurance options of the aBd, alI and adI – Type on a level of Mathematical Reserves of Premiums in life Insurance
The Impact of additional Insurance options of the aBd, alI and adI – Type on a level of Mathematical Reserves of Premiums in life Insurance

Summary/Abstract: Pursuant to the Act, The insurance company shall have at its disposal a proper amount of reserves connected with an insurance premium, which shall suffice to cover the insurer’s liabilities on account of reimbursement of future benefits. Methods of calculating mathematical reserves in traditional in- surance may be found in a classical actuarial literature according to which a reserve is calculated as an actuarial value of accumulated future money flows including the risk of death and the change of money value in time, that is the so-called actuarial risk. Insurance companies offering complex in- surance products such as life insurance with additional options, among other things, with the ADBs (Accelerated Death Benefits), ALIs (Acceleration Life Insurance), AI (Accident Insurance) and ADIs (Accidental Death Insurance) option, pursuant to SOLV...NCY II ought to take into consideration in their calculations also an additional aspect of risk arising from extended actuarial risk which is covered. In this article by combining a financial and insurance attitude, calculation of reserves for a life insur- ance with additional option of the ADBs, ALIs and ADIs-type is made, which is determined as a proper conditional expected value with allowance for an extended actuarial risk and the impact of additional options on their amount is examined.

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