Calculation of Life Insurance Products by Means of Markov Chains

Introduction & Programme

The calculation of life insurance products is traditionally based on the approach of commutation values, whose table properties enable extensive actuarial calculations even without large computer capacities. However, especially for modern and more flexible life insurance tariffs, the calculation by means of commutation values reaches its limits, so that the calculation approach based on Markov chains is gaining in importance and has been used for some time in the mathematical cores of new portfolio administration systems.

This web session will provide an insight into the calculation of common life insurance products using the Markov approach. For this purpose, first an overview of the best-selling life insurance products in some European countries and their classic calculation will be given. In the following, the principle of Markov chains is explained and a model for calculating actuarial values is derived.

Finally, the online training also addresses problems that can arise when migrating from classically calculated portfolios to systems with the Markov approach.

Preliminary Programme
Thursday, 8 October 2026
10:00-12:00 Topics:

• Calculation of life insurance products
• Markov chains
• Mathematical Kernel
• Administration systems

All the above times are given in CEST (Central European Summer Time).

Learning Objectives & Approach

The goal of this web session is to give participants an insight into the Markov chain calculation approach in life insurance and its implementation in modern administration systems. Using examples specifically tailored to life insurance tariffs, participants will also gain first practical experience with the Markov approach. Finally, the theoretical and practical components of this web session should enable them to also create and calculate new life insurance tariffs or variations of existing products by using Markov chains.

Participants

This web session is suited for actuaries in (but not restricted to) life insurance with experience in the traditional calculation of life insurance products by means of commutation values.

Since the practical part of the web session is based on examples created in MS Excel, only basic experience in MS Excel is required. 

Technical Requirements
Please check with your IT department if your firewall and computer settings support web session participation (the programme Zoom will be used for this online training). Please also make sure to join the web session with a stable internet connection.

Lecturers

Thorsten Keil
Thorsten Keil holds a degree in mathematics and works as a Principle Consultant at the consulting firm Auctor Actor Advisor GmbH. In a career spanning more than 30 years, he has held various positions within the life and reinsurance industry. From 1999 to 2015, he worked at various locations of SCOR SE, where he gained extensive knowledge of life insurance markets and products on a national and international level. From 2016 to 2020, he worked as Head of the Mathematical Department for a German insurance group, where he also held the position of the actuarial function and appointed actuary.

Andreas Seidel
Andreas Seidel holds a degree in mathematics and works as a Principle Consultant at the consulting firm Auctor Actor Advisor GmbH. Starting in 2010 he has held several positions within the life insurance industry. From 2010 to 2016, he worked as an actuary at ALTE LEIPZIGER a.G., where he gained wide knowledge of life insurance models and products. From 2016 to 2018, he worked as Head of the Life Operating Department for a local German insurance group and was in addition responsible for product development.

Language & CPD Credits

The language of the web session will be English.

CPD Credits
For this web session, the following CPD credits are available under the CPD scheme of the relevant national actuarial association:

• Austria: 2 points
• Belgium:  2 points
• Bulgaria:  3 points
• Croatia: individual accreditation
• Czechia:  2 hours
• Denmark 2 credits
• Estonia:  2 hours
• Finland: 2 points
• France:  12 points
• Germany:  2 hours
• Greece: 3 points
• Hungary:  2 hours
• Iceland: 2 credits
• Ireland: 2 hours
• Italy: individual accreditation
• Latvia: 2 hours
• Lithuania: 2 hours
• Netherlands:  approx. 2 points (individual accreditation)
• Norway: 2 points
• Poland: 2 hours
• Portugal: 2 hours
• Serbia: 2 hours
• Slovakia:  individual accreditation
• Slovenia:  individual accreditation
• Spain: CAC: 2 hours, IAE: 2 hours
• Switzerland:  individual accreditation
• USA: SOA (Section B): up to 2.4 hours

No responsibility is taken for the accuracy of this information.

Fees & Registration Details

Early Bird Registration Fee (until 27 August 2026):

• For private customers in the EU: €160.00 + VAT of the billing country (example Germany: €190.40 incl. 19% VAT)
• For private customers outside the EU: €190.40 (incl. 19% VAT)
• For businesses within the EU (excl. Germany, with valid VAT ID): €160.00 (net, reverse charge applies)
• For businesses in Germany: €190.40 (incl. 19% VAT)

Regular Registration Fee (from 28 August 2026):

• For private customers in the EU: €210.00 + VAT of the billing country (example Germany: €249.90 incl. 19% VAT)
• For private customers outside the EU: €249.90 (incl. 19% VAT)
• For businesses within the EU (excl. Germany, with valid VAT ID): €210.00 (net, reverse charge applies)
• For businesses in Germany: €249.90 (incl. 19% VAT)

Important VAT Information:

• For private customers with a billing address in an EU country: VAT will be charged at the applicable rate in the country of the billing address. The final amount, including VAT, will be calculated upon invoicing.
• For customers with a non-EU (third country) billing address: Only a non-company billing address is accepted for VAT compliance reasons. 19% VAT applies to all non-EU private customers.
• For businesses within the EU (excluding Germany), Iceland, Liechtenstein, Norway, Switzerland, and the UK with a valid VAT ID: The reverse charge mechanism applies (net price; VAT will not be charged). Please ensure your valid VAT ID is entered correctly during registration.
• For all customers with a billing address in Germany: 19% VAT applies.

Please submit your registration using our online form below. Closer to the event, you will receive further login details to join the web session.

Your registration is binding. Cancellation is only possible up to 2 weeks before the first day of the event. If you cancel later, the full participation fee is due. You may appoint someone to take your place but must notify us in advance. EAA has the right to cancel the event if the minimum number of participants is not reached.

We will send you an invoice via email. Please allow a few days for handling. Please always give your invoice number when you effect payment. All bank charges are to be borne by the participant.

Registration is open until two working days before the web session. If registration has already been closed for this web session, please call us or send an email to contact@actuarial-academy.com in order to find out whether a late registration is still possible.