Description: Exploration of sources of volatility in retiree health valuations, noting how volatility arises and might be mitigated, with discussion of valuation parameters more problematic for retiree health benefits than for pensions. Three significant influences on retiree health valuation volatility are covered-- changes in benefit level, fluctuations in cost level, and alterations in eligibility for, or duration of, benefit – and attention focused on the last two. Specific conclusions result in recommendations, which are supported by practical examples contrasting volatile measurement results with those likely from the recommended practices. Theoretical discussion includes health claim variation, health trend usage, financial economics, option pricing, discount rates, and deterministic vs. stochastic modeling.

Description: The Behavioral Finance subgroup of the Health Section will be publishing a series of literature reviews in Health Watch. This is the first review of three in the series. The reviewed article describes an attempt to place an econometric value on consumers’ preferences between broad and narrow networks.

Description: Summarizes the articles in the newsletter.

Description: Public DB plans have fatal designs such as basing benefits on a few years of earnings. Redesigning DB to be similar to SS will alleviate solvency challenges.

Description: Calculating the risk adjustment confidence level disclosure required by IFRS 17 if the risk adjustment itself is calculated using a cost of capital approach

Description: 2016 marks the 60th anniversary of the Canadian Reinsurance Conference. This one day industry meeting hosting delegates from North America and beyond will be held in Toronto on April 13, 2016 under the theme "ReDefining Leadership".

Description: The article summarizes three papers presented at the 2014 Living to 100 Symposium V, which was hosted by the SOA in Orlando in January 2014. The papers take three different views of retirement saving: the individual's, the insurance provider's and a wholesale risk management view. David Blanchett of Morningstar proposes a new model to assess the true cost of retirement, Moshe Milevsky proposes a new product concept based on the nearly forgotten tontine and Johnny Li proposes a new set of mortality indices based on the Cairns-Blake-Dowd projection model for the purpose of actively managing mortality and longevity risk.

Description: The article discusses the sustainability of the ACA individual market from a public entitlement standpoint. A key point of measuring sustainability is the reliance on market forces rather than federal budget constraints. The article explains why an actuarial viewpoint of sustainability is necessary to a greater extent than other public assistance and social insurance programs. The article challenges actuaries to be a bold, objective voice in a space that is full of opinionated but often uninformed viewpoints.

Description: This article delves into a new line of statistical thinking of the author, that may be useful for product development actuaries. The key concept is how product design can produce products that diversify quickly, meaning that the company can be confident of a profitable product line, based on fewer sales than might be true for other designs.

Description: From a session at the 2000 Valuation Actuary Symposium held in Washington DC, September 14-15, 2000 Discussion of newer and more innovative investment structures and the modeling of these securities in cash-flowing testing and asset/liabilities management analysis.