Description: Scenario generators used in financial models to quantify risk are sometimes described as being as either “real-world” or “risk-neutral”. The difference is in the treatment of the market price of risk. This report explores the relationship between real-world and risk-neutral scenarios and when it is appropriate to use each type.

Description: Economic Scenario Generator - Investment Section Web Series Session #1 - Fundamentals & Hot Topics This session will cover the following points: 1. Introduction: ESG Basics, What is Risk Neutral and Real World? 2. Interest Rate Modeling 3. Equity and Private Equity Modeling 4. Example use cases facing investment professionals and actuaries today

Description: The Society of Actuaries (SOA) Research Institute released an updated report summarizing current issues regarding actuarial technology. In March 2022, for a second time, the SOA Research Institute gathered a panel of insurance industry experts for an update on current actuarial technology topics to help identify directions for future research efforts. This report summarizes their discussions on the Actuarial operating model, technology risk and open-source software.

Description: Economic Scenario Generator - Investment Section Web Series Session #2 - Real World This session will cover the following points: 1. NAIC ESG 2. Strategic Asset Allocation and Optimization Techniques 3. Covid-19 Postmortem: Modeling and calibration changes because of recent events

Description: Discussion of the new scenario generator selected by the NAIC and its behavior at low interest rates.

Description: This research report analyzes the risk associated with the use of models through the potential for model error.

Description: On November 30, 2021, the SOA Research Institute assembled an industry expert panel to discuss current issues in actuarial technology. Each participant who volunteered to be part of the discussion was selected because of their management-level responsibilities for the application of technology in an actuarial context. The group was diverse in terms of employment, including company actuaries from life, health, and property/casualty backgrounds, as well as consultants from various kinds of firms. This document summarizes the discussion that occurred during the three-hour meeting. To encourage candor during the discussion, participants were assured that this report would not attribute comments to individuals or companies, so no names appear in the body of the report. The names of those who participated are included at the end of the report.