This is a method for allowing for the uneven incidence of expenses in a
net premium valuation. It involves an increase - Zillmer adjustment - to the
net premium which has the effect of reducing the value of a contract at its
first valuation and thereby reducing new business strain.
Zillmerised reserves are lower than unzillmerised reserves for the whole
of the premium paying term of a contract.
Zillmerisation has no effect on the reserves for single premium policies
or paid-up policies since these policies have no future premiums.