Expected value provision (best estimate)

Regulatory term used in the course of
Solvency II; it refers to the present value of expected future cash flows for insurance companies. The requirement here is that future expenses for claims payments must be calculated in advance and discounted using mathematical-statistical methods. – Cf. BaFin Annual Report 2006, p. 49 (uniform method of calculation under Solvency II).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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