... assign the above terminology to deterministic and dynamic lapse. Deterministic lapsation is not scenario specific and thus can be considered within offline calculations. For performance reasons, internal risk models of insurance companies should be designed to perform as many calculations as possible...

...Dorothea Diers; Martin Eling; Christian Kraus; Marc Linde Purpose The purpose of this paper is to present a simulation‐based approach for modeling multi‐year non‐life insurance risk in internal risk models. Strategic management in an insurance company requires a multi‐year time horizon...

...Dorothea Diers; Martin Eling; Marc Linde Purpose The purpose of this paper is to illustrate the importance of modeling parameter risk in premium risk, especially when data are scarce and a multi‐year projection horizon is considered. Internal risk models often integrate both process and parameter...