Description: The roots of the crisis are understood on a simplified basis, by 3 Ls: a Lack of accountability b Leverage and c Liquidity. Historically, people requiring mortgages sought their mortgages from local institutions that would conduct the evaluation and hold the risk. Loan officers of these institutions were accountable for the outcomes of their decisions – defaults were a direct reflection on their judgment. Leverage was a second key factor. Institutions guaranteed mortgages against default. The third L, liquidity, because a problem. When property values eventually evidenced their inevitable fall, defaults occurred at historically high rates.

Description: With advancement of computing technology and innovative product design, creating dependent and nested stochastic scenarios to accurately predict insurance business has become more feasible and affordable than it used to be. However, can technology and research be accessible, applicable and beneficial to all the stakeholders? Sharing research findings and its validation tools has been our interest and focus, and even a resource-saving strategy. The presenters will share a case study on a segregated fund with hedging strategy. We investigate the reserve calculation for its GMMB in an extensive but simplified stochastic model so that our method is adoptable, applicable and extendable to real-word segregated fund/separate account model. The segregated fund model theory and implementation will be presented and its cash flows will be simulated and analyzed for reserve calculation. Varying parameter assumptions will be tested and to be modified for real-world segregated fund with hedging risk for guaranteed benefits. At the conclusion of the session, attendees will gain basic understanding of and access to: - The option pricing model and its application to the segregated fund (variable annuity's separate account) guarantee - Stochastic scenario generators for the interest rates and equity returns - R-code to program from the scenarios simulations to cash flows of hedging errors - Reserve calculations and its sensitivity to various parameter values and - Comparison of methods to increasing efficiency level and the accuracy

Description: The Individual Life Experience Committee has completed their latest report on intercompany mortality experience by amount of insurance under standard individually underwritten issues. This includes study years 2009-2016.

Description: Join the Education and Research Section for a review of current E&R work for the year, including the 2019 Actuarial Research Conference. This breakfast is open to all meeting attendees free of charge. If you plan to attend, you must register in advance.

Description: Explains the methods for determining rates based on experience, such as mortality and claim utilization rates.

Description: Explains the methods for determining rates based on experience, such as mortality and claim utilization rates.

Description: The presenters will discuss a paper, initiated by the SOA's Experience Studies Executive Committee, that presents the various rate calculations used in experience studies for different lines of business.

Description: This presentation shows how the the linear model is derived assuming that the force increases linearly over the year.