Discount rates for insurance contracts: one size does not fit all

The IASB Exposure Draft (ED) and the FASB Discussion Paper (DP) propose that discount rates for insurance liabilities should be consistent with observable markets and reflect the characteristics of insurance liability cash flows.

This webcast explores the fundamental components of discount rates: the risk-free rate, illiquidity premium and credit spread. A small change in any of these components can often have a significant impact on insurers’ profit or loss and capital position.

Please join our panel as they:

• Analyze current interest rates
• Discuss methods for determining discount rates for insurance liability cash flows
• Illustrate the impact that discount rates can have on volatility