Retrospective Reserves and Bonus with Policyholder Behavior

Legislation imposes insurance companies to project their assets and liabilities in various financial scenarios. Within the setup of with-profit life insurance, we consider retrospective reserves bonus, study projection balances with without policyholder behavior. The resides a system differential equations savings account surplus, behavior options surrender conversion free-policy are included. inclusion results structure where surplus is non-trivial. We case able find accurate suggest an approximation method including behavior, general. To highlight practical applications this paper, numerical example.