I am a little confused on the following, would invite all of your views
1. What is Variable Life and Unversal Vairable life Term Insurance? Funny part is beyond 2009, they apparantly don’t feature anymore in the Insurance business as per the CFAI text itself, then why mention? What is the significance?
2. Non Life Insurance has shorter duration liability which is being tackled by shorter duration asset in the Insurance portfolio. However the same would be insensitive to inte. rate volatility and movement and direction thereof. In case the asset duration is shorter than that of the liability it should also increase the Re investment risk, would it not?
3. In case of Life Insurance, the above Re investment problem is increased manifold
Need detailed explanation.
Thanks
1. What is Variable Life and Unversal Vairable life Term Insurance? Funny part is beyond 2009, they apparantly don’t feature anymore in the Insurance business as per the CFAI text itself, then why mention? What is the significance?
2. Non Life Insurance has shorter duration liability which is being tackled by shorter duration asset in the Insurance portfolio. However the same would be insensitive to inte. rate volatility and movement and direction thereof. In case the asset duration is shorter than that of the liability it should also increase the Re investment risk, would it not?
3. In case of Life Insurance, the above Re investment problem is increased manifold
Need detailed explanation.
Thanks