Description: This report is jointly sponsored by LIMRA International and the Society of Actuaries in collaboration with Ernst & Young. It describes Substandard Annuities and discusses the market opportunity for them, underwriting, the associated risk management issues, and the issues companies need to address when competing in the substandard annuity market. It discusses the single premium immediate annuity, SPIA, in relation to substandard annuities and the differences between the products.

Description: Feature article that discusses how insurance and banking business models have continued to grow in complexity over the past 50 years—from simple and local risk exposures to the current environment of complex and global exposures

Description: This report is sponsored by the Society of Actuaries in collaboration with Ernst & Young. It examines the application of stochastic modeling techniques to non-market risks facing the life insurance industry.

Description: This paper introduces a rich stochastic modeling framework for understanding risks in multiple-decrement contracts. The example in the paper is a 20-year Term insurance contract. Not only are mortality and lapsation considered stochastic, but the parameters governing them are. For example, mortality risk is composed of four risk elements, including error generated in the underwriting process, volatility around the best estimate, catastrophic events that impact mortality, and the trend in mortality improvement or deterioration. When stochastically modeled, the relative contribution and risk profile of each risk element can be evaluated. Generating stochastic mortality results provides a distribution of results that an organization faces and the severity and incidence of the tail events.

Description: This paper is a literature review of available papers, publications, articles, and presentations on the topic of longevity risk.

Description: This article looks at stochastic techniques actuaries can use to quantify the non-market risks in insurance products and how stochastic techniques can be used in the evaluation of reinsurance arrangements.

Description: Full version of Risk Management, December 2006, Issue No. 9.

Description: This article focuses on risk quantification at an enterprise level.

Description: Feature article discussing the possibility of the LIBOR rate ceasing to exist in 2021 at what that would mean for insurance companies.

Description: This article discusses specific challenges in model risk management, and practical solutions to those challenges, which are critical to building a model risk management capability. Through our experience working with insurers to build a model risk management capability, we have identified four areas in need of special attention: model definition, model governance and policy, model validation, model documentation. Addressing the challenges within these areas early on can help prevent more complex problems from arising later in a model's life cycle.