About Market Consistent Valuation in Insurance
The latest developments of both prudential (Solvency II) and financial reporting (MCEV, IFRS) frameworks seem to consecrate market consistent valuation as a kind of paragon of insurance liabilities assessment. In this chapter, we initially try to analyze the underlying motivations of this evolution. We show that it results from an objective of harmonization of measurement of quite different insurance contrats. This heterogeneity being the result of heterogeneous national insurance regulations. In the second part, we analyze the limitations of this measurement principle. For that, we mobilize some of the arguments opposed to Fair Value Accounting. Moreover, we insist on the limitations resulting as well from the implementation issues as of their use in a risk management perspective.