Description: Despite a clear need and demographics which should be favorable to LTCI growth, the market remains stalled due to lack of understanding on the consumer side, and uncertainty on carriers' side. The 3 key risk areas for carriers are morbidity, terminations, and investment earnings. Financial market innovations which can address these include: repackaging risks as derivative securities, interest rate swaps and options, and inflation swaps.

Description: An article on the advantages of using a strategic plan to grow your business.

Description: This article considers ways actuaries can meet the growing demands of senior executives by redefining their role and the actuarial operating model.

Description: This issue wraps up the publication of essays to explore solutions available to address risks in retirement and focus on risks in a DC environment.

Description: By expanding their knowledge base, actuaries can develop a broad business perspective which in combination with the analytical skills characteristic of the profession can help them succeed in the areas of strategy and general management.

Description: Presented at October 1985 Annual Meeting. Discusses the current expected mortality rate of defined benefit plans, what changes in this mortality rate are likely, will defined benefit plans be replaced by other programs requiring actuarial expertise, will retraining of actuaries be necessary, what we can learn from other places and other times.

Description: The impact of Fed’s QE program on the financial markets has been enormous and profound. The tapering and the eventual removal of the stimulus will be equally enormous and profound, and may be disruptive. To adapt to the potential regime change in near future, some investment strategies have been proposed: (1) shorten duration to focus on the short end of the yield curve and create laddered portfolios; (2) reduce allocation to high yield bonds; (3) rotate out interest rate sensitive sectors such as utilities; and (4) use interest rate derivatives to hedge the interest rate uncertainties lying ahead. On the other hand, contrarians who see the QE program continuing may stay the course and consider (1) adding duration, (2) gaining exposure to high yield bonds, and (3) increasing allocation to utilities and telecoms.

Description: This paper investigates the optimal multi-period proportional reinsurance strategy that minimizes the ruin probability of an insurer. Some conditions under which it is optimal to have no reinsurance are derived. Based on these results, a new concept, capital threshold of proportional reinsurance, is introduced. In the case of two periods, a lower bound of the capital threshold of proportional reinsurance is provided. Some economic implications and properties of this new concept are also discussed.

Description: Presented at October 1986 Annual Meeting. This session discussion is about interest-sensitive products and methods of arriving at current rates, current regulatory restraints on illustrative rates, illustrations of vanishing premium products, advantages of deferring taxes on inside build-up, trends toward emphasis on marketing of financial services and buy term and invest the difference.