Life and Annuity Symposium

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Tuesday, May 5
7:00 a.m. – 3:30 p.m.
Registration is open for all meeting attendees
7:00 – 8:00 a.m.
A continental breakfast buffet is available for all meeting attendees.

Session Sponsor(s): Investment Section

Moderator(s): Frank M. Grossman, FSA, FCIA, MAAA; Ryan Joel Stowe, FSA, MAAA

Presenter(s): Ronald J. Harasym, FSA, CERA, FCIA, MAAA

Be sure to attend the Investment Section's hot breakfast for an update on section activities and to connect with other section members.

Our guest speaker is Ron Harasym and his topic is "A Modelers Guide to the Universe." As products have become increasingly complex, so have demands for more integrated information and analysis ... all on a timely basis! Learn about the evolution of actuarial modeling from pricing to holistic company level projections, with a few tricks and traps along the way. Challenges such as achieving effective diversification in sync with one's product strategy, and other risk measures and uses, will be discussed.

This breakfast is open to all meeting attendees. There is a nonrefundable fee of $10 per person for Investment Section members and $25 per person for all others. Please include the additional fee with your registration.

Session Coordinator(s): Ryan Joel Stowe, FSA, MAAA

Session Sponsor(s): Taxation Section

Moderator(s): Steeve Jean, FSA, FCIA, MAAA

Presenter(s): Sheryl Flum, JD

Learn about the various functions performed by the IRS (exams and Appeals), Office of Chief Council and Office of Tax Policy and how the work is coordinated. Also, discover what happens when a taxpayer submits a request for private guidance (PLR or Change in Accounting Method) to the IRS.

This breakfast is open to all meeting attendees. There is a nonrefundable fee of $10 per person for Taxation Section members and $25 per person for all others. Please include the additional fee with your registration.

Session Coordinator(s): Mark D. Biglow, ASA, MAAA

Session Sponsor(s): Education & Research Section

Moderator(s): Thomas P. Edwalds, FSA, ACAS, MAAA

This is an open meeting to give potential members an opportunity to learn about the Education & Research Section, while providing a networking opportunity for current and potential members.

This breakfast is open to all meeting attendees at no charge. Please be sure to register in order to receive a ticket.

Session Coordinator(s): Thomas P. Edwalds, FSA, ACAS, MAAA

8:15 – 9:30 a.m.

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: External Forces & Industry Knowledge

Moderator(s): James M. Filmore, FSA, MAAA

Presenter(s): Thomas P. Edwalds, FSA, ACAS, MAAA; Dieter S. Gaubatz, FSA, FCIA, MAAA

This session covers current topics in mortality including development of the 2014 VBT and its financial impact. This is a chance for actuaries to better understand how the new valuation table was developed and other important topics related to mortality associated with life and annuity business.

At the conclusion of the session, attendees will be able to understand how the 2014 VBT was developed. They will also understand other important developments in mortality experience.

Experience Level: Intermediate

Session Coordinator(s): James M. Filmore, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section; Joint Risk Management Section; Modeling Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Sebastien Cimon Gagnon, FSA, CERA

Presenter(s): Sebastien Cimon Gagnon, FSA, CERA; Katherine M. Papillon-Rodrigue, ASA, CERA, MAAA; Jeffrey S. Schlinsog, FSA, MAAA

The topic of model validation has become more important for many companies in the last few years. Several external and internal forces have driven this increased attention, including from SIFI designations, Solvency II validations, ERM motivations as well as previous model issues. This session will cover the several topics that fall under model validation, including the assessment of model risk, review of model methodologies and assumptions, model documentation, model testing and model governance.

At the conclusion of the session, attendees will be able to understand the drivers for recent increased industry focus on model validation as well as the key components of model validation to better appreciate the potential gaps in a model.

Experience Level: All

Session Coordinator(s): Kendrick D. Lombardo, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Forecasting & Futurism Section; Product Development Section; Modeling Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Ricardo Trachtman, FSA, MAAA

Presenter(s): Eileen Sheila Burns, FSA, MAAA; Qichun (Richard) Xu, FSA;

In this session, experts will discuss the fundamentals of predictive modeling (PM), available techniques and details on how to build a PM application. More specifically, the focus of this session will review the Generalized Linear Model (GLM), which has a wide application in insurance. The example will be an actuarial application of the GLM model that an actuary could use in their current day-to-day work.

At the conclusion of the session, attendees will be able to:

  • Understand what Generalized Linear Model is, its mathematical foundation, and its application
  • Have the solid concept on the general procedure of how to build a PM application
  • Understand how to interpret a GLM model and connect it to real business

Experience Level: All

Session Coordinator(s): Ricardo Trachtman, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Financial Reporting Section

Competency: External Forces & Industry Knowledge

Moderator(s): Thomas Q. Chamberlain, ASA, MAAA

Presenter(s): Katie Cantor, FSA, MAAA; Charles K. Chacosky, FSA, MAAA; Thomas Q. Chamberlain, ASA, MAAA

This session will discuss the most recent developments with U.S. GAAP reporting. Experts in the application of U.S. GAAP concepts will discuss theoretical and practical aspects of emerging issues. Topics will include profits followed by losses, loss recognition testing, current practices for Indexed products, and FASB tentative decisions on the future of US GAAP.

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At the conclusion of the session, attendees will be able to:

  • Understand recent developments in U.S. GAAP reporting
  • Comprehend typical account approaches used
  • Apply recent changes in practice

Experience Level: Intermediate

Session Coordinator(s): Jim McWilliams, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Smaller Insurance Company Section; Management & Personal Development Section

Competency: Communication

Moderator(s): Raymond E. DiDonna, FSA

Beyond technical skills, actuaries must be outstanding communicators and influencers in order to maintain the critical roles they play within insurance organizations. Early career development for actuaries is focused on building a strong technical and industry foundation. Once this foundation is in place, however, actuaries must quickly adapt to being submerged in a fast-paced, results-oriented business environment that requires the ability to communicate effectively and, more importantly, influence others. It's not enough to have the right answers; actuaries must be able to present compelling arguments to win over their audience. For the first time in your career you may be managing a staff that is looking for direction, recommending a course of action to senior leaders, or trying to persuade non-actuarial colleagues who may see the world differently. This open forum is intended to educate actuarial professionals on key business influencing skills that will be beneficial in the near term as well as throughout their careers.

At the conclusion of the session, attendees will be able to:

  • Influence management, subordinates, and peers
  • Communicate in a clear, compelling way
  • Determine how to get decisions made efficiently
  • Increase their network of contacts

Experience Level: All

Session Coordinator(s): Kenneth B. (Brad) Shepherd, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Taxation Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Mark D. Biglow, ASA, MAAA

Presenter(s): Mark D. Biglow, ASA, MAAA; Jeffrey Thomas Stabach, FSA, MAAA; James P. Van Etten, FSA, MAAA

This session will focus on a comparison of distributions between MECs and non-MECs, qualified and non-qualified annuities and LTC riders attached to life insurance or annuity contracts. The primary focus will be on IRC Section 72 and discussion will center around the tax treatment of policyholder distributions from insurance contracts.

At the conclusion of this session, attendees will be able to explain the tax treatment of policyholder distributions from insurance carriers.

Experience Level: Intermediate

Session Coordinator(s): Mark D. Biglow, ASA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Society of Actuaries

Competency: Professional values

Moderator(s): Mike A. Boot, FSA, MAAA

Presenter(s): Mike A. Boot, FSA, MAAA; Jeffrey S. Drake, FSA, MAAA

You've worked in the same department since you received your actuarial designation. You've attended sessions at SOA meetings each year and you even took some notes. You read every Product Development Section and Reinsurance Section newsletter cover to cover. You listened to a webcast on the new ASOP. The online directory shows that you are compliant. Your company has been sued and you are being deposed. The plaintiff's attorney asks if you are a qualified actuary. How would you respond? In this session we will look at what it means to be qualified to perform actuarial services in an established practice area, an emerging practice area, and when changing practice areas.

At the conclusion of the session, attendees will be able to explain what it means to be qualified to perform actuarial services and describe what should be considered with respect to being qualified to perform actuarial services when changing practice areas or working in an emerging practice area.

Note: This session will be repeated today, Tuesday, May 5, at 12:45 to 2:00 p.m. See Session 77 IF.

Experience Level: All

Session Coordinator(s): James A. Miles, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): SOA Research; Financial Reporting Section

Competency: External Forces & Industry Knowledge

Moderator(s): R. Dale Hall, FSA, CERA, MAAA

Presenter(s): John K. Bruins, FSA, MAAA; R. Dale Hall, FSA, CERA, MAAA; Karen K. Rudolph, FSA, MAAA

The 2014 VBT/CSO has been exposed and will be considered to be adopted by the NAIC in 2015. The new tables will impact a variety of statutory reserve calculations and the calculation of minimum nonforfeiture benefits. With the move to principle-based reserves, the new tables impact a wide variety of calculations within the statutory framework.

At the conclusion of the session, attendees will be able to identify the impact of the new tables across different product types and statutory calculations.

Experience Level: Intermediate

Session Coordinator(s): R. Dale Hall, FSA, CERA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): SOA Research; Product Development Section

Competency: External Forces & Industry Knowledge

Moderator(s): John A. Luff, FSA, FCIA, MAAA

Presenter(s): Kristin K. Gustafson, FSA, MAAA; Joel C. Sklar, ASA, MAAA

The intent of the latest Individual Payout Annuity Experience Study is to provide recent annuitant mortality experience that can be compared to the Annuity 2000 Mortality Table, as well as the recently completed 2012 Individual Annuity Mortality Table. Several factors, including mortality improvement, gender and retirement class, were studied. The latest Group Annuity Experience Study adds data for two biennial experience periods: 2007-2008 and 2009-2010 results to the most recent previous report by the Committee covering the periods 2003-2004 and 2005-2006.

At the conclusion of the session, attendees will have knowledge of the experience on various facets of individual and group annuities. They will also obtain information specifically on mortality improvement trends for these products.

Experience Level: All

Session Coordinator(s): Korrel Rosenberg

9:30 – 10:00 a.m.
A refreshment break is available for all meeting attendees.
10:00 – 11:15 a.m.

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section; Reinsurance Section

Competency: External Forces & Industry Knowledge

Moderator(s): Joshua John Wolf, FSA

Presenter(s): Carl A. Friedrich, FSA, MAAA; Susan J. Saip, FSA, MAAA; Bonnie Elizabeth Wolf, FSA, MAAA

Living benefit riders continue to become increasingly prevalent in the U.S. market. These riders include terminal illness riders, chronic illness/LTC riders and extension of benefits riders. To help clarify this topic, the SOA has sponsored a research paper on these riders. As part of the project, a survey was completed of both direct writing companies and reinsurers. This session will cover a sampling of results from this project. It will address various issues and concerns associated with adding some of these riders to your products.

At the conclusion of this session, attendees will be able to speak more readily on key findings of the SOA research on living benefit riders for life and annuity products. They will also have a deeper appreciation of the challenges these riders can present.

Experience Level: All

Session Coordinator(s): Catherine J. Bierschbach, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Reinsurance Section; Product Development Section

Competency: Results-Oriented Solutions

Moderator(s): Jeremy Lee Lane, FSA, CERA, MAAA

Presenter(s): Maria Patricia Marcelo Arellano, FSA, CERA, MAAA; Brian K. Carteaux, FSA, MAAA

This session will look at many of the in-force management challenges facing insurers today. Actuaries evaluating topics including post-level term management, policyholder behavior on life insurance products/features and ways to maximize the performance of in-force annuity blocks will find discussion on the current thinking around these challenges.

At the conclusion of the session, attendees will be able to:

  • Evaluate potential in-force challenges on their business
  • Apply current best practices when managing this business
  • Explain the approaches currently being used by others in the industry

Experience Level: Intermediate

Session Coordinator(s): Jeremy Lee Lane, FSA, CERA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Forecasting & Futurism Section; Product Development Section; Modeling Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Ricardo Trachtman, FSA, MAAA

Presenter(s): JJ Lane Carroll, FSA, MAAA; Allen M. Klein, FSA, MAAA; Scott Anthony Rushing, FSA, MAAA

Experts will discuss predictive modeling tools and techniques that can be utilized in actuarial application life insurance and annuities, along with a brief introduction of predictive modeling (PM) developments, opportunities and challenges in the insurance industry. This session will focus more on the possible PM applications with real-life examples. Presenters will discuss general guidance for where predictive modeling tools can be effectively used and where they cannot. There will be an opportunity for attendees to ask questions.

At the conclusion of the session, attendees will be able to:

  • Understand current and emerging trends in predictive modeling and data analytics in life insurance and annuities
  • Identify opportunities where predictive modeling can improve the business and the challenges
  • Understand the application of predictive modeling to several life insurance and annuity business issues

Experience Level: Intermediate

Session Coordinator(s): Ricardo Trachtman, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Investment Section; Modeling Section

Competency: Results-Oriented Solutions

Moderator(s): Ryan Joel Stowe, FSA, MAAA

Presenter(s): Jinsung Yoo, FSA, Ph.D.

This session will review key pricing and modeling considerations in the context of economic scenario generators. Risk neutral and real world scenarios are used for different purposes and have different characteristics that can affect risk measurement and pricing outcomes. How these scenarios are created, the management actions assumed and the investment strategies are integral components of the final outcome.

At the conclusion of the session, attendees will be able to interpret and explain differences between risk neutral and real world scenarios. In addition, attendees will be able to identify key characteristics of each type of scenario and how they should (and should not) be used in modeling processes.

Experience Level: Intermediate

Session Coordinator(s): Ryan Joel Stowe, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Marketing & Distribution Section

Competency: Strategic Insight and Integration

Moderator(s): Kimberly Anne Jackewicz, ASA, CERA, MAAA

Presenter(s): Christopher John Amon, FSA; Nilufer Ahmed, Ph.D.

How do you know you're reaching your key demographic? Can you use the same approach to reach baby boomers and capture the attention of Generation Y? In this session, a panel of experts will discuss changing demographics in today's insurance market, as well as how marketing should cater to each market segment.

At the conclusion of this session, attendees will be able to:

  • Understand how demographics are changing in today's marketplace
  • List the similarities and differences between generation segments from a marketing perspective

Experience Level: All

Session Coordinator(s): Jennifer L. Brady, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Smaller Insurance Company Section; Marketing & Distribution Section; Product Development Section

Competency: Strategic Insight and Integration

Moderator(s): Michael L. Kaster, FSA, MAAA

Presenter(s): Raymond E. DiDonna, FSA; Michael L. Kaster, FSA, MAAA; Charles E. Ritzke, FSA, MAAA

With a constantly evolving life insurance and annuity marketplace, how does an actuary decide which products or product features are best suited for their company? How can an actuary ensure that the development process results in products that are a good fit? In this session, presenters will draw from their own experiences to discuss key considerations such as marketing fit, administrative complexity and risk appetite. Presenters will also discuss effective communication skills that will allow you to get the facts heard, understood and accepted.

At the conclusion of the session, attendees will be able to apply concepts learned to their own company's situation, determine which products provide the best fit for their company and demonstrate more effective communication skills throughout the product development process. 

Experience Level: All

Session Coordinator(s): Kenneth B. (Brad) Shepherd, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Education & Research Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Thomas P. Edwalds, FSA, ACAS, MAAA

Presenter(s): Chin-Mei Yvonne Chueh, ASA

AMOOF 3.0 implements a library of loss distributions/models, automates the optimization for their maximum likelihood fitting to data sets and further computes statistical and probabilistic metrics as a tool for data-driven actuarial experience studies. AMOOF 3.0 can be widely applied to advance data modeling analytics for various insurance fields including life & annuities and property and casualty, in which heavy tailed probability distributions are used. Using the AMOOF tool can save time that is better used in exploring meaningful research questions in data-rich but discovery-poor experience studies or stochastic modeling practice. This session presents development background, program features and innovations, application in life and annuities, as well as the comparison of this free research and educational tool to others in the market.

At the conclusion of the session, attendees will be able to understand the functionalities of the AMOOF3 tool and apply this tool in some examples of model fitting and reporting.

Experience Level: All

Session Coordinator(s): Chin-Mei Yvonne Chueh, ASA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): SOA Research; Taxation Section

Competency: External Forces & Industry Knowledge

Moderator(s): R. Dale Hall, FSA, CERA, MAAA

Presenter(s): John K. Bruins, FSA, MAAA; R. Dale Hall, FSA, CERA, MAAA; Karen K. Rudolph, FSA, MAAA;

The 2014 VBT/CSO has been exposed and will be considered by the NAIC in 2015. The new tables will impact a variety of tax reserve calculations and the calculation of product tax items such as Definition of Life Insurance under 7702 and product taxation under 7702A.

At the conclusion of the session, attendees will be able to identify the impact of the new tables across different product types and tax calculations.

Experience Level: Intermediate

Session Coordinator(s): R. Dale Hall, FSA, CERA, MAAA

11:30 a.m. – 12:30 p.m.

This is your opportunity to network with your peers during lunch. And don't forget to make new professional connections and explore fresh opportunities!

The luncheon is included in your registration fee. You may register your guest(s) for the luncheon by including $125 per person with your registration fee. Admission tickets are available for purchase at the meeting as space permits. Refunds will not be available.

12:45 – 2:00 p.m.

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Paul Fedchak, FSA, MAAA

Presenter(s): Paul Fedchak, FSA, MAAA; Douglas L. Robbins, FSA, MAAA

Ever wonder why reality differs from pricing? Modeling limitations, actual vs. expected assumption differences, as well as a host of pricing nuances and naiveties can complicate the accuracy of life insurance and annuity product pricing. At this primer session for the post-symposium seminar of the same name, our expert panel will share insights on how to identify for pitfalls and close the gap between pricing and reality.

At the conclusion of the session, attendees will have a better understanding for life insurance and annuity products pricing and modeling limitations. They will also learn how to account for impactful nuances to help improve the pricing of your products.

Experience Level: All

Session Coordinator(s): Kurt A. Guske, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Stuart H. Silverman, FSA, CERA, MAAA

Presenter(s): Meghan Belinski, FSA; David Jaffe, FSA, EA; Stuart H. Silverman, FSA, CERA, MAAA

Identifying and working with issues associated with the pricing of variable annuities can be challenging, unlike traditional insurance products in which insurance companies are able to comfortably quantify profitability metrics associated with the launch of a new product. The speakers in this session will discuss challenges and issues relating to the pricing of these products, as well as emerging trends impacting those pricing efforts.

At the conclusion of this session, participants will be able to understand the current marketplace best practices for pricing variable annuities, as well as emerging trends impacting pricing.

Experience Level: Intermediate

Session Coordinator(s): Kenneth Scott Birk, FSA, CERA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section; Reinsurance Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Donna Christine Megregian, FSA, MAAA

Presenter(s): Alan J. Hobbs, FSA, LLIF, MAAA; Carmela Tedesco

Many companies are attempting to balance enhancing the customer and agent experience with gathering enough information to effectively categorize the risk while still trying to minimize anti-selection. From streamlined underwriting to full underwriting, companies want to eliminate wasteful, ineffective and invasive testing but still identify and offer the lowest rates to preferred risks. Actuaries who interact with underwriters can participate in a discussion of underwriting techniques that may be favorable or unfavorable to their business models.

At the conclusion of the session, attendees will be able to:

  • Identify new and emerging underwriting techniques that are being explored by the industry
  • Compare the pros and cons of the techniques
  • Evaluate the potential for exploration or incorporation of these techniques into their products

Experience Level: All

Session Coordinator(s): Donna Christine Megregian, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Forecasting & Futurism Section; Product Development Section

Competency: External Forces & Industry Knowledge

Moderator(s): Ben H Wolzenski, FSA, MAAA

Presenter(s): Robert P. Stone, FSA, MAAA; Ricardo Trachtman, FSA, MAAA

During this interactive session we will form a forecast, based on attendee input, of what might happen in the next ten years in life insurance and annuity markets. The session will begin with a review of the Delphi method. The audience will then be asked to be the Delphi "panel of experts" and answer a series of questions about life and annuity products and product development using polling equipment. The aggregated responses will be shown to the audience, and questions will be repeated in rounds with added commentary to produce a refined forecast.

At the conclusion of the session, attendees will be able to find out the aggregate audience views on a number of life and annuity product issues and understand how the Delphi method was used to develop those forecasts.

Experience Level: Intermediate

Session Coordinator(s): Ricardo Trachtman, FSA, MAAA

Credits: 1.50 CPD

Session Sponsor(s): Actuary of the Future Section; Joint Risk Management Section; Management & Personal Development Section

Competency: Leadership

Moderator(s): Steeve Jean, FSA, FCIA, MAAA

Presenter(s): Sharon Giffen, FSA, FCIA; Benjamin Lawrence Keslowitz, FSA, MAAA; Alla Kleyner, FSA, MAAA

Actuaries are taking over the world! (OK, not quite yet.) We are seeing more actuaries in management and leadership roles, and this seems to be an upward trend. With more actuaries taking an integral role in the corporate management group, how do we prepare ourselves to seize this opportunity? Traditionally, actuarial professionals were regarded as "analytical" but were branded as not possessing the "softer" skills. So, what are the skill sets needed to be part of the leadership group in our organizations? The panelists for this session will share their stories and insights to a successful actuarial career in leadership roles. At the conclusion of the session, attendees will have gained insight into career success factors they can relate to their own circumstances. Attendees should then be able to determine steps that will help them successfully pursue a career path toward the C-suite.

At the conclusion of the session, attendees will be able to:

  • Articulate the strengths actuaries can bring to a leadership role
  • Consider the skills needed for a leadership role
  • Apply the discussion topics to their own career situation and ambitions

Experience Level: All

Session Coordinator(s): Aisling Metcalfe, FSA, FIA, CERA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Financial Reporting Section

Competency: External Forces & Industry Knowledge

Moderator(s): Samuel J. Keller, FSA, MAAA

Presenter(s): Francis Rahil, ASA, CERA, ACIA; Bruce B. Rosner, FSA, MAAA

In today's world of rapidly evolving product designs, unforeseen economic environments and a global drive towards accounting consolidation, new insurance accounting guidance is seemingly being published frequently. Given this significant volume of recent and emerging guidance applying to insurance accounting, many insurers are unsure of the exact application and impact of these new principles. The SOA's Financial Reporting Section sponsored research into the application and resulting effects of these new accounting frameworks. This session focuses on the results of the study. Utilizing illustrative examples for a term and deferred annuity product types, attendees for this session will gain a better understanding of the new accounting regimes and differences between them. Among the bases examined include proposed IASB insurance accounting standard, US statutory, US GAAP, Canadian GAAP and Solvency II market consistent balance sheet.

At the conclusion of the session, attendees will be able to better interpret proposed accounting regimes as well as understand the key differences between them.

Experience Level: Intermediate

Session Coordinator(s): Jim McWilliams, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Joint Risk Management Section; Marketing & Distribution Section

Competency: Strategic Insight and Integration

Moderator(s): David Schraub, FSA, CERA, AQ, MAAA

Presenter(s): Kevin J. Pledge, FSA, FIA; Sim Segal, FSA, CERA

Obsolescence and evolution forced changes on numerous industries. Could it now be the life insurance industry's turn, with Silicon Valley taking over the distribution of products based on customers' insight? This session will explore the risks and opportunities of a potential disruption.

At the conclusion of the session, attendees will be able to think strategically about their distribution channel methods and evaluate the possible impact of a new life distribution entrant on the market.

Experience Level: All

Session Coordinator(s): David Schraub, FSA, CERA, AQ, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Modeling Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Leonid Shteyman, FSA

Presenter(s): Trevor D. Huseman, FSA, MAAA; Leonid Shteyman, FSA

Modeling indexed products can be an attractive alternative to a conventional general account product, both for the consumer and the insurer, especially when low interest constrains the growth of fixed income funds. Indexed products come in a variety of flavors, caps, floors. Indexing techniques differ from contract to contract and scenario testing requires assumptions in terms of interest rates, market performance and the cost of derivative instruments. This session aims to spell out some of the challenges and provide specific ideas and examples relevant to the modeling of these contracts for pricing, reporting and inforce management.

At the conclusion of the session, attendees will be able to identify the modeling challenges posed by indexed products, select appropriate techniques for dealing with these challenges and evaluate the strengths and limitations of the resulting models.

Experience Level: All

Session Coordinator(s): Phillip Schechter, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Society of Actuaries

Competency: Professional values

Moderator(s): Mike A. Boot, FSA, MAAA

Presenter(s): Mike A. Boot, FSA, MAAA; Jeffrey S. Drake, FSA, MAAA

You've worked in the same department since you received your actuarial designation. You've attended sessions at SOA meetings each year and you even took some notes. You read every Product Development Section and Reinsurance Section newsletter cover to cover. You listened to a webcast on the new ASOP. The online directory shows that you are compliant. Your company has been sued and you are being deposed. The plaintiff's attorney asks if you are a qualified actuary. How would you respond? In this session we will look at what it means to be qualified to perform actuarial services in an established practice area, an emerging practice area, and when changing practice areas.

At the conclusion of the session, attendees will be able to explain what it means to be qualified to perform actuarial services and describe what should be considered with respect to being qualified to perform actuarial services when changing practice areas or working in an emerging practice area.

Note: This session is a repeat of Session 54 IF.

Experience Level: All

Session Coordinator(s): James A. Miles, FSA, MAAA

2:00– 2:30 p.m.
A refreshment break is available for all meeting attendees.
2:30 – 3:45 p.m.

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: External Forces & Industry Knowledge

Moderator(s): Francis de Regnaucourt, FSA, CERA, FCIA, MAAA

Presenter(s): Francis de Regnaucourt, FSA, CERA, FCIA, MAAA; Marc-Andre Giguere, FSA, FCIA, MAAA; Andrew G. Steenman, ASA, MAAA

Numerous changes are occurring in the regulatory world that can impact life insurance and annuity product development in the U. S. and Canada. This session will cover topics such as Actuarial Guideline 48, principle-based reserves, and the 2014 VBT.

At the conclusion of this session, attendees will have a better understanding of the current regulatory environment and the implications the current conditions have on life insurance and annuity product development.

Experience Level: Intermediate

Session Coordinator(s): Jeremy Allen Bill, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Competency: Strategic Insight and Integration

Moderator(s): Kelly J. Rabin, FSA, MAAA

Presenter(s): Katie Cantor, FSA, MAAA; Michael A. Polonsky, FSA, MAAA; Kelly J. Rabin, FSA, MAAA

Pricing actuaries tend to be most focused on actually pricing the product, through building a model, developing rates and calculating expected profitability. However, there are many other tasks that need to be completed to ensure successful product implementation. This session will discuss best practices in this area with respect to completing pricing documentation, transitioning to the valuation team, monitoring ongoing product profitability and more.

At the conclusion of the session, attendees will be able to apply new techniques to improve their "Day 2 duties," define deliverables to ensure a smooth handoff between pricing and other areas and explain the importance of coordination between areas.

Experience Level: All

Session Coordinator(s): Kelly J. Rabin, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Forecasting & Futurism Section; Product Development Section; Modeling Section

Competency: Strategic Insight and Integration

Moderator(s): Jean-Marc Fix, FSA, MAAA

Presenter(s): Patrick Sugent; Cheng-Sheng Peter Wu, ASA, FCAS, MAAA; Eric Weisburg

Actuarial science has used models to predict future events since its early beginnings and actuaries have been the front runners on using models to address business issues. However, in past decades, advanced data analytics in other industries are growing much more sophisticated due to the increase of computing power, explosive data availability and mathematical techniques on a scale rarely seen in the insurance space. These developments present opportunities for the insurance industry, as well as challenges from new competitors. Presenters from outside of insurance industry will share insights and comments on business challenges and opportunities, developments in analytic techniques and tools and particular applications of data science in various industries.

At the conclusion of the session, attendees will be able to:

  • Understand the breadth and depth of data science developments in general, applications in other industries and their accessibility to actuaries
  • Understand potential collaborators on data science initiatives outside insurance and the possible impact on the insurance industry
  • Understand competitors for resources on data science talent and pressure from outside of the insurance domain

Experience Level: All

Session Coordinator(s): Ricardo Trachtman, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Entrepreneurial Actuaries Section

Competency: Strategic Insight and Integration

Moderator(s): Larry N. Stern, FSA, MAAA

Presenter(s): Peter Carayiannis; Larry N. Stern, FSA, MAAA

Does it make sense for independent consultants to follow the same business model developed by large consulting firms only to compete with these firms on their terms? This session looks at ways independent actuarial consultants can set themselves apart. Peter Carayiannis, founder of Conduit Law, will present. Unlike traditional law firms, Conduit Law does not bill by the hour, but instead provides its client with a in-house resource at a fraction of the price it would normally cost them. Could this model or something similar be adopted by actuaries?

At the conclusion of the session, attendees will be able to evaluate and develop strategies for small independent consultants to compete against larger consulting firms.

Experience Level: All

Session Coordinator(s): Kevin J. Pledge, FSA, FIA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Financial Reporting Section

Competency: Relationship Management & Interpersonal Collaboration

Moderator(s): Tara J. P. Hansen, FSA, MAAA

Presenter(s): Steven M. Altschuld, FSA, MAAA; Tara J. P. Hansen, FSA, MAAA; Sam M. Steinmann, ASA, MAAA

Insurance products are becoming increasingly complex and as a result calculations required for financial reporting are becoming more complicated. At the same time, auditors are under more pressure than ever to validate the accuracy of insurance company financial statements. Oversight from the PCAOB only adds to the burden on external auditors. Attend this interactive session to learn more about the relationship between practicing actuaries and their financial auditors.

At the conclusion of the session, attendees will:

  • Understand the regulation and oversight that impacts the auditing profession
  • Appreciate the internal environment of a practicing company actuary
  • Obtain advice about how to build stronger relationships between company actuaries and their external auditors

Experience Level: Intermediate

Session Coordinator(s): Jim McWilliams, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Taxation Section

Competency: External Forces & Industry Knowledge

Moderator(s): Timothy Gregory Branch, FSA, MAAA

Presenter(s): Timothy Gregory Branch, FSA, MAAA; Sheryl Flum, JD; Samuel A. Mitchell; Peter H. Winslow, JD

Panelists at this session will describe key aspects of life insurance company taxation that actuaries may need to consider in life and annuity pricing, valuation and modeling exercises. Topics will be geared to actuaries with low to moderate knowledge of tax reserves and related items.

At the conclusion of the session, attendees will be aware of the key aspects of issues regarding life insurance company taxation.

Experience Level: All

Session Coordinator(s): Mark D. Biglow, ASA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Technology Section; Actuary of the Future Section; Management & Personal Development Section

Competency: Relationship Management & Interpersonal Collaboration

Moderator(s): Raymond E. DiDonna, FSA

This session will explore ideas to help actuaries to become effective managers. Early career development for actuaries is focused on building a strong technical and industry foundation. Once this foundation is in place, however, an actuary must quickly pivot from being a technical expert to being a manager and a leader-someone who others rely on to guide, motivate, decide and deliver results. Managing a team is not only about being the 'go to' technical expert, it's about producing superior results through the work of others. It's often easier to do it yourself, but it's more beneficial to you professionally, as well as your organization, to bring out the best in others. This open forum is intended to educate young and seasoned actuarial professionals on key management skills that will be beneficial in the near term as well as throughout their careers.

At the conclusion of the session, attendees will be able to:

  • Understand how to build a high-performance team, identify key elements of leading a team
  • Motivate team members by communicating constructive feedback in a clear, compelling way
  • Understand different decision-making strategies to empower their teams
  • Use metrics to deliver superior results

Experience Level: All

Session Coordinator(s): Albert Jeffrey Moore, ASA, MAAA

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): SOA Research; Product Development Section; Smaller Insurance Company Section

Competency: External Forces & Industry Knowledge

Moderator(s): David N. Wylde, FSA, MAAA

Presenter(s): Rodney P. Cordle, FSA, MAAA; Mark Dion, FALU, FLMI; David N. Wylde, FSA, MAAA

The SOA's Committee on Life Insurance Mortality and Underwriting Surveys undertook three surveys and companies were requested to provide data on the following three topics:

  • Financial Underwriting and Fraud Prevention - demographics; large case underwriting teams and underwriting approval authority; underwriting requirements and data gathering; financial underwriting guidelines and practices; and fraud. The purpose of the survey was to examine the various requirements, guidelines and procedures life insurance companies establish to underwrite the applicant's financial risks and efforts to mitigate financial underwriting and other fraud risk.
  • Joint Life Pricing and Product Development - new business and in-force life insurance amounts; product structure; features and riders; underwriting; administration; pricing decrements; and reinsurance. This survey was designed to provide a detailed review of product features, underwriting and various other practices for JLS policies, while identifying those aspects unique to JLS product forms.
  • PBR Assumptions - their familiarity with PBR, PBR resources, mortality assumption setting and modeling and product development implications. This survey was designed to provide an overview of the current state of the industry's preparedness for implementing PBR and was performed jointly with the NAIC.

At the conclusion of the session, attendees will:

  • Know the steps companies are taking to prevent fraud in the underwriting process, what company practices are related to financial underwriting and how companies integrate these steps in the overall underwriting process.
  • Have knowledge about how companies perform joint life pricing and product development. They will also learn about the types of JLS products available.
  • Have knowledge about how companies are responding to PBR in the areas of resources, mortality assumption setting and modeling and product development implications.

Experience Level: All

Session Coordinator(s): Korrel Rosenberg

3:45 – 4:00 p.m.
A refreshment break is available for all meeting attendees.
4:00 – 5:00 p.m.

Judith E. Glaser

Judith Glaser will also participate in the closing session. She will take a closer look at her concept of Conversational Intelligence and methods for improving skills in conversational situations. Audience participation is encouraged during this session and attendees will have the opportunity to ask questions.

Back

Legend

Communication

Demonstrating the listening, writing and speaking skills required to effectively address diverse technical and nontechnical audiences in both formal and informal settings.

Professional Values

Adhering to standards of professional conduct and practice where all business interactions are based on a foundation of integrity, honesty and impartiality.

External Forces & Industry Knowledge

Identifying and incorporating the implications of economic, social, regulatory, geo-political and business changes into the design and delivery of actuarial solutions.

Leadership

Initiating, innovating, inspiring, creating or otherwise acting to influence others regardless of level or role toward a common goal.

Relationship Management & Interpersonal Collaboration

Creating mutually beneficial relationships and work processes toward a common goal.

Technical Skills & Analytical Problem Solving

Applying the actuarial knowledge, skills and judgment required to provide value-added services.

Strategic Insight & Integration

Anticipating trends and strategically aligning actuarial practice with broader organizational business goals.

Results-Oriented Solutions

Providing effective problem solving that addresses relevant interests and needs.