Volatility is widely accepted as a practical measure of risk in the financial world. In recent times, we have been accustomed to equity volatility being comparatively low compared to historical levels. However, there are number of factors currently bubbling to indicate that we may expect to see a return of volatility in the near future. Central banks are at some point likely to wean the financial markets off the financial stimulus of recent years. Equity price valuations are currently looking precariously high, and in Europe we have the uncertain ramifications of Brexit to prepare for.
This webinar is aimed at providing participants with an understanding of how equity volatility behaves, and the predictive models that could be used to forecast volatility. We will discuss how this knowledge can be applied by insurance companies. Firstly, a discussion of the market-consistent valuation of insurance guarantees on funds that are invested in equity. Secondly, how predictive volatility could be used to manage dynamic asset allocation strategies. We will also discuss how these management strategies are increasingly used by insurance companies to help protect their balance sheet from significant movements in volatility.
This webinar will therefore help practitioners be well-placed to monitor, measure and manage the implications of volatile movements in equity volatility itself.
Organised by the EAA - European Actuarial Academy GmbH.