Assumption Setting

When to Use

Define or update assumption sets for pricing, reserving, capital, or ALM models
Document assumption rationale, sources, and effective dates for governance or audit
Classify assumptions by category (economic, demographic, behavioral, operational)
Apply selection methodology (experience, industry tables, judgment, blending)
Design sensitivity and scenario grids tied to material drivers
Establish governance: owners, approval tiers, change control, version history
Build assumption packs differentiated by use case (rate indication vs valuation vs ORSA)
Reconcile emerging experience vs last-approved assumptions before model runs
Benchmark assumptions against industry or regulatory reference points (overview)