Description: The widening gap in life span between high- and low-income Americans may be eroding the progressivity of Social Security retirement benefits. Differential longevity trends have had the effect of raising lifetime benefits for high earners but not for low earners. Social Security’s long-term financial problems result in part from an increase in average life expectancy driven by wealthier people living longer, and, thereby, collecting more benefits. Policymakers should not use funding shortfalls attributable to these trends as an excuse to cut monthly benefits alike for those who have gained (high earners) and for those who haven’t (low earners).

Description: This paper presents an advanced approach to enterprise risk management that, according to the author, significantly improves upon current approaches. The two fundamental elements are a focus on the management of strategic plans and a heavy reliance upon probability theory.

Description: Insurance is a technically demanding, risk-based, capital intensive business. It is therefore not surprising that the industry is fertile ground for the development of technical models used to measure and price risk and manage capital. This session presents the forces which have significantly influenced the evolution of risk and capital management techniques and organization in the insurance industry, including regulatory changes, financial market instability, enlightened self-interest and ultimately a focus on shareholder value creation. Combining over 20 years in the industry in risk and finance roles with a rigorous academic approach, the presenter will provide insights into the most important business questions which insurers face today and the technical tools and frameworks used to answer them.

Description: This article, Spreadsheet Controls Add Risk Resilience, spotlights why spreadsheets have stood the test of time and how they help contribute to an actuary’s success. It also discusses common causes of data integrity issues relative to spreadsheets. And, offers insight into controls that can be utilized to helps actuaries solve these issues and ensure the accuracy and consistency of the data on which they base their analysis.

Description: Discussion and Opinion on how randomness affects measurement of provider contracting risk-sharing agreements

Description: LTC insurers are beginning to implement population health programs to improve the lives of their policyholders before and during a claim. Measuring the financial impact of these programs can be difficult for a variety of reasons and multiple methodologies are used to evaluate treatments or programs. This article proposes two different methods of randomized control trials to evaluate the impact of these programs through a case study approach, along with additional potential considerations when evaluating effectiveness.

Description: This paper presents a new perspective on three basic financial quantities: assets, liabilities and surplus. The new perspective is developed through a re-examination of the fundamental concepts inherent in these quantities. This re-examination clarifies the difference between the concept and the various rules commonly used to establish their numerical value. With the benefit of this clarification, an alternate approach to the development of surplus is presented. From Actuarial Research Clearing House 1993, VOL. 3.

Description: This article provides an overview of activities that should be considered by an actuary when validating a predictive model. It describes several components to consider when validating a predictive model and provides an examination of various methodologies that can be implemented in the validation process.

Description: The objective of this presentation was to evaluate the different pricing techniques as to their effectiveness in capturing and quantifying the varied risks associated with the sale and administration of life insurance and annuity products. The results of a 2002 company survey about pricing were presented in support of this objective.

Description: Explore the value and cost of prescription drugs, how they should be defined and measured and the effects various stakeholders in the pharmacy ecosystem can have on these factors in the latest webcast. You'll investigate the impact of coverage, formulary and rebate negotiations and related benefit design. Find out how actuaries can answer questions related to the prescription drug industry, in addition to improving the access, quality and affordability of prescription drugs in the United States. Join us for this webcast and come learn about value-based contract design, negotiations, implementation and administration for prescription drugs.