Mithras Consultant

  In the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE), end of service benefit (ESB) are a cornerstone of the employment framework. These benefits, provided to employees upon the conclusion of their service through retirement, resignation, or termination, offer essential financial security. For both employers and employees, the precise valuation of these benefits is crucial. It ensures adherence to local labor laws, facilitates sound financial planning, and aids in the accurate calculation of reinsurance premiums. Understanding the importance of ESB valuation helps businesses in KSA and UAE effectively manage their financial obligations and ensures a smooth operational flow. Compliance with Labor Regulations The labor laws in KSA and UAE mandate that employers provide end of service benefit based on the duration of an employee’s service. Compliance with these laws is not only a legal requirement but also a fundamental aspect of responsible business managemen...

  Understanding employee leave policies is crucial for both employers and employees. Two important concepts in this realm are leave encashment and leave availment. These terms may sound similar, but they refer to different aspects of leave management. Leave encashment involves converting unused leave into monetary compensation, while leave availment is the actual taking of leave for rest, personal time, or other reasons.  Knowing the difference between these can help employees make informed decisions about their leave and benefits. Today, we will explore the key differences between leave encashment and leave availment, providing a clear understanding of each concept. What is Leave Encashment? Definition and Purpose Leave encashment allows employees to receive payment for their unused leave days. This is often done at the end of the financial year or upon retirement or resignation. The main purpose is to provide a monetary benefit for leave that an employee did not take. How ...

  The concept of  actuarial valuation  is indeed quite popular when it comes to the insurance and pension industry. But did you know that even sensitivity analysis is indeed quite an important concept? Sensitivity analysis is a vital tool in actuarial valuation, providing insight into how changes in these assumptions impact the valuation results. Why do you need the sensitivity analysis? Sensitivity analysis allows you to understand the robustness of the valuation and if the process involves any risks. Meaning of Sensitivity Analysis In Actuarial Valuation  The term sensibility analysis refers to a process where one can analyze how the variation in the output of a model is due to variations in the input parameters. When it comes to the context of actuarial valuation, you will need to adjust more than one assumption to understand how it can affect the valuation of the liabilities. Wondering why you would need sensitivity analysis in  actuarial valuation ? One of ...