GB!
05-02-2010, 11:10 PM
Not sure if someone has posted this question before. In the example of Lifetime value analysis, PV of premium is calculated by discounting the premium only. I assume this lifetime value approach is the same as Asset Pricing approach in Feldbum paper. In that paper, the PV of premium is accounted for both the discount rate as well as cumulative persistency rate.
Anyone knows if the example of the book was missing accounting for persistency rate or lifetime value approach is different from Feldbum paper's approach?
Thanks for any inputs!
Anyone knows if the example of the book was missing accounting for persistency rate or lifetime value approach is different from Feldbum paper's approach?
Thanks for any inputs!