Description: The author proposes the concept of a risk-free equivalent rate of return on shareholders' equity, or ‘REROSHE,’ as a means of helping business managers make decisions involving risk. The author defines REROSHE as ‘that certain return on an investment of u that will generate the same expected value of utility as will earnings on a line of business supported by surplus u.’ Includes discussion and author’s review of discussion. From Transactions of Society of Actuaries 1983 Volume 35.

Description: This paper uses a mortality surge model to estimate the total financial impact on the U.S. insurance industry of a flu pandemic. It does not attempt to determine the probability of such a pandemic.

Description: Discusses Aug. 23, 2007, meetings in Salt Lake City, Utah, about principles-based approach for both reserves and risk-based capital, RBC.

Description: S&P reissued a second Request for Comment (RFC) in May 2023 that proposed changes to their insurer capital adequacy methodology and assumptions, and suggested these proposed changes may become effective at the end of 2023. This paper is to highlight the notable changes between the current capital model criteria and the proposed model. We also discuss major changes from the first RFC and the second RFC, as well as several key items that still require enhanced guidance and clarification. Our analysis is based on information gathered from S&P's public comments, conversations with industry participants, and publications released by S&P Global as of July 2023 when this paper was written. Most U.S. life insurers are rated by S&P using their U.S. Life Statutory Capital model, while other insurers use the GAAP/IFRS Capital Model. Statutory financials will remain the starting point for U.S. life insurers under the proposed model, however there will be additional adjustments made to these numbers in an effort to create consistency and comparability with other accounting and solvency regimes.

Description: The current life insurance development with a focus on the latest regulation change from actuarial perspective and its possible impact to the Vietnam industry.

Description: The Society's Task Force to Study Risk of Loss from Changes in the Interest Rate Environment C-3 Risk Task Force was formed in March 1981 with the charge to quantify C-3 risk. The Task Force made a preliminary report as part of a panel discussion on C-3 risk at the Society's October 1981 meeting in Atlanta. This presentation provides an update on the progress to date and its future plans.

Description: The IAA Risk Book provides a set of high quality reference materials for use in managing the uncertainty of insurer risks.

Description: Since solvency assessment depends on a financial reporting framework, one needs risk metrics for use in financial reporting. The essay argues that conceptually, the cost of capital is the appropriate metric for reserves, while a probability level is the appropriate metric for capital. Then the essay advocates stress testing on specific scenarios as a better practical approach to ORSA.

Description: This session from the 1995 SOA Spring Meeting reviews surplus management strategies. Topics addressed include risk-based capital RBC, reinsurance, growth and profitability, cost of capital, and required surplus.

Description: An insurance product’s return on required equity demonstrates how successfully its results are covering the company’s basic capital. Using some simplified assumptions, it is possible to calculate this return ratio and decompose it without a full projection of liabilities.