Description: Research report describing the results of an Emerging Risks Survey conducted in 2012. The report includes comparisons to the four previous surveys as well as a survey sent to INARM members in April 2008.

Description: This paper demonstrates that extreme value theory (EVT) can be used as a tool to model policyholder behavior in the extreme tail. This paper applies EVT to the study of variable annuity dynamic lapse behavior in the extreme tail. It illustrates a process whereby a company can fully model policyholder behavior, including the extreme tail, with existing data. No judgment about the extremal behavior is necessary.

Description: Metadata for entire issue

Description: This article discusses key considerations to build an incentive compensation program.

Description: Feature article that defines strategic risk management (SRM) and discusses ways to design and optimize a company’s SRM process.

Description: he co-editors introduce themselves and preview the articles in this issue.

Description: This article advocates for a lower variable part in salary and increase focus on other mechanisms (goal setting, simpler product, management, culture and processes). The psychological aspect of belonging to the incentive compensation pool is more important that the financial aspect.

Description: Demonstrating that incentive maximization could lead to failure using game theory. This is illustrated by the optimum strategy for the Prisoner Dilemma single period, multi period and infinite period that could be mutually destructive or beneficial.

Description: Reminding that incentive compensation needs to hit the target on average, needs to have variability related to the level of control over company’s fortune and ensure people are participating.

Description: "Management must manage. An incentive compensation formula will not be sufficient."