Description: The article summarizes implications of rising interest rates on U.S. GAAP and statutory financial reporting for life insurers, highlighting potential tailwinds from steady increases and headwinds from sharp increases. We further provide insights into how insurers can leverage ALM programs and interest rate risk hedging practices to favorably position themselves in a rising rate environment

Description: The implementation of the IFRS 17 insurance accounting standard has brought significant changes to the financial reporting landscape of insurance companies. With new disclosure requirements and altered profit analysis, understanding and interpreting future profitability have become a topic of concern for the industry. While stability remains a key objective for insurance companies, the earning patterns might become more volatile especially when the contractual service margin (CSM) is exhausted, and a loss component (LC) needs to be established. Reinsurance, a common risk mitigation tool, can play a pivotal role in managing earnings volatility and minimizing losses for onerous measurement units. In this article, we propose a new key performance indicator (KPI) called “loss recoverability” to assess the performance of reinsurance treaties in achieving these objectives. We explain how this KPI can be utilized in multiple scenarios to evaluate the effectiveness of reinsurance strategies and pursue stability in earning patterns.

Description: As actuaries in health care, we spend most of our time focused on reviewing claims, enrollment and clinical data. That information is captured while patients are in health care facilities. Yet most people spend only a small fraction of their time in these facilities. This article explores what types of data are available to actuaries the provide a more holistic view of the member so that a members physical and emotional needs, the social determinants of health can be taken into consideration along with their clinical needs. Two uses cases are presented so actuaries can see how these types of analyses can be leveraged to improve clinical, operational, and financial performance of risk bearing health entities. Understanding the customer (member) not just the patient enables actuaries to provide new insights and values to our stakeholders across a wide range of business and risk applications.

Description: The method described in this paper is to allocate surplus to each category of business and reserves in proportion to its estimated effect on an insurer's surplus variation. Risk load for each category of business is then selected so that the return on allocated surplus for each category is equal to the overall return on surplus. From Actuarial Research Clearing House 1993, VOL. 3.

Description: Universal Life with Secondary Guarantees (ULSG) was first introduced in the late 1990's as low-cost, long-term death benefit protection. As this business ages, writers are experiencing pressured earnings from emerging experience, secondary markets for insurance products and low interest rates. In response, writers are sharpening their pencils on experience analysis and risk management with an eye for opportunities to increase the performance of their blocks.

Description: 2021 ImpACT Conference - Session 6E: Impact of New UW Data Sources and Tools 10.27.21 Recording

Description: 2021 Life Meeting - Session 9D: MRBs: Special Considerations for Fixed Indexed Annuities 9.1.21 Recording

Description: The direct and indirect effects of the pandemic have impacted many actuaries’ work since the spring of 2020. This article addresses three considerations actuaries should account for when using risk evaluation models which are focused on projecting remote, highly unlikely losses: model effectiveness, asset risk, and insurance (mortality and mortality) risk.

Description: State regulators and the American Academy of Actuaries will present on the latest developments for the future fixed annuity principle-based reserving framework. The presenters will provide an overview of the proposed methodology, as well as updates on regulatory discussions, field testing, the project timeline and outstanding framework elements yet to be determined. By the end of the session, attendees will understand what changes are being made to non-variable annuity reserves, details underlying existing proposals and the anticipated timing of such emerging changes. The session will meet the needs of actuaries focused on annuity reserve calculations, financial reporting and valuation.

Description: 2021 ImpACT Conference - Session 14A: Credit Risk & Small Diverse Businesses Within Underserved Communities 10.29.21 Recording