Analysis of capital calculation models for a life insurer

Abstract

Theamountofcapitalrequiredtostartanybusinessentityisveryvital. The methods used to determine it are also very important as they will determine whether the company stays afloat or not. The subject of this study is to analyze risks surrounding capital calculation for an insurer our main focus being Life Insurance. The study looks at what other countries use like Australia and United Kingdom. Analyze the various capital calculation risks that insurers face in Kenya and the world in general.In the research we shall calculate the reserve that is to be set aside to ensure a life insurance company stays solvent as claims is one of the major risks that insurers face