Valuation of Life Insurance Products with Sochastic Interest Rates

摘要

In this article,a new model of pricing insurance products is proposed aimed at the problems existing in the valuation of life products.The random interest rate is used instead of fixed interest.The rate of minimum guaranteed return g is used as minimum interest rate returned to the insured.The loss function is established and minimizing this function will get the optimum solution of g *.The calculation of g * and the price of insurance products is illustrated with an example.