Interest Rate

  • Michael Koller
Part of the EAA Series book series (EAAS)


An important part of every insurance contract is the underlying interest rate. The so called technical interest rate describes the interest which the insurer guarantees to the insured. It is a significant factor for the size of the premiums. If the technical interest rate is too low it yields inflated premiums, if it is too high it might yield to insolvency of the insurance company.


Interest Rate Discount Rate Cash Flow Monetary Union Insurance Contract 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  • Michael Koller
    • 1
  1. 1.Mathematics DepartmentETH ZürichZurichSwitzerland

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