Explanation

Answer Example

I approach valuing insurance liabilities by first segmenting policies by lines of business and regions, ensuring alignment with local regulatory frameworks like Solvency II in Europe or NAIC in the US. I use actuarial models such as stochastic modeling to project future claims, combined with discounted cash flow techniques to determine present value. For example, while valuing liabilities for a multinational health insurer, I applied a risk-adjusted discount rate to reflect regional differences, ensuring compliance and accurate liability estimates. This structured approach balances precision with regulatory alignment.