Announcement: SOA releases passing candidate numbers for September 2019 Exam P.

Agenda Day Three

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Tuesday, May 9
6:00 a.m. – 3:30 p.m.
6:00 a.m. – 7:00 a.m.

Presentation(s): View Presentation

Session Sponsor(s): Education and Research Section

Moderator(s): John K. McGarry, ASA, Ph.D.

Presenter(s): Brian Matthew Hartman, ASA, Ph.D.

At this networking breakfast we will provide an update on E&R Section activities and a preview of the 2017 Actuarial Research Conference at Georgia State University.

This breakfast is open to all meeting attendees free of charge. If you plan to attend, you must register in advance.  

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

Facilitator(s)

Presentation(s): View Presentation

Session Sponsor(s): Financial Reporting Section; Smaller Insurance Company Section

Moderator(s): David M. Ruiz, FSA, FIA, MAAA

Presenter(s): Steven C. Chamberlin, FSA, MAAA; David M. Ruiz, FSA, FIA, MAAA

During this breakfast, an update on Financial Reporting and Smaller Insurance Company Section activities as well as offer an opportunity to network.

This breakfast is open to all meeting attendees free of charge. If you plan to attend, you must register in advance.  

Session Coordinator(s) Leonard Mangini, FSA, FALU, FRM, MAAA

Facilitator(s)

Session Sponsor(s): Modeling Section

Moderator(s): Bruce B. Rosner, FSA, MAAA

Presenter(s): Trevor C. Howes, FSA, FCIA, MAAA; Bruce B. Rosner, FSA, MAAA

This breakfast session will provide an update on recent happenings in the Modeling Section and include a discussion of modeling hot topics.

This breakfast is open to all meeting attendees free of charge. If you plan to attend, you must register in advance.  

Session Coordinator(s) Brenna R. Gardino, FSA, MAAA

Facilitator(s)

6:15 a.m. – 7:15 a.m.
7:15 a.m. – 8:30 a.m.

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: Results-Oriented Solutions

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

Presenter(s): Paul Fedchak, FSA, MAAA; Illya Golanek, FSA, CERA, MAAA; Jacqueline M. Keating, FSA, MAAA

Experience Level: Intermediate

Companies can implement VM-20 as early as 2017. While there have been research and educational materials produced to help actuaries and others better understand the implications and implementation of the new requirements from a financial reporting perspective, little has been developed emphasizing the product development actuary perspective. This SOA research project examines the impact of VM-20 from a product development actuarial perspective. The research will help actuaries and others enhance current practices to optimize pricing and product development activities within a VM-20 framework as well as enhance intracompany communication and efficiencies related to VM-20. 

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

  • Apply VM-20 concepts to their pricing processes;
  • Evaluate the impact of changing to VM-20 on profitability and pricing; and
  • Identify areas in which they will need to coordinate with the financial reporting area.

Country Relevance: U.S.

Note: This session will be repeated on, Tuesday, May 9, from 1:15 to 2:30 p.m. See Session 72 PD.

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

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

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

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Yuan Tao, FSA, CFA, MAAA

Presenter(s): Melanie Dunn, ASA, MAAA; Ricky Power, FSA, CERA, FIA; Marcus Szeto, ASA, MAAA

Experience Level: Beginner

This session is intended to provide a practical understanding of when risk neutral or real world scenarios should be used in the process of modeling life and annuity products. The panel will cover the theory behind the risk neutral and real world frameworks, and provide an overview of how a scenario set is developed to be real world or risk neutral. Then, the panel will provide practical guidance for when each framework should be used, with examples from the pricing of variable annuities and other products with embedded guarantees.

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

  • Describe the theoretical differences between real world and risk neutral scenario sets;
  • Explain how risk neutral and real world scenario sets are developed;
  • Identify when it is appropriate to use risk neutral vs. real world scenarios in financial models; and
  • Apply the understanding of risk neutral vs. real world scenarios to pricing and modeling life and annuity products.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Yuan Tao, FSA, CFA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section; Entrepreneurial & Innovation Section; Marketing & Distribution Section

Competency: Strategic Insight and Integration

Moderator(s): Lin Ling Sun, FSA, CERA, MAAA

Presenter(s): Lauren Minches, FSA; Chirag Pancholi; Hal Schwartz

Experience Level: All

With funding of insurance tech startups topping $1 billion in the first half of 2016, our industry is seeing new entrants and their ideas take shape. This session will explore a selection of insurance startups that are tackling the challenges of new channels, leveraging big data and new types and structures of insurance. The panelists will share their experiences working in and with insurance technology startups.

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

  • Identify the forces that are driving the creation of insurance technology startup;
  • Demonstrate an understanding of the various players; and
  • Appreciate how actuarial professionals fit in the new insurance models.

Country Relevance: U.S. and Canada

Note: This session will be repeated on, Tuesday, May 9, from 10:00 to 11:15 a.m. See Session 59 PD.

Session Coordinator(s) Lin Ling Sun, FSA, CERA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Entrepreneurial & Innovation Section; Actuary of the Future Section; International Section; Leadership & Development Section

Competency: Leadership

Moderator(s): Kelly M. Hennigan, FSA, CFA

Presenter(s): Wilbur Wai Keung Lo, FSA; Timothy S. Paris, FSA, MAAA; Tracey J. Polsgrove, FSA, MAAA

Experience Level: All

This session will generate valuable insights for leaders and aspiring leaders. To be successful in corporate management, decision-makers must balance the needs of various internal and external stakeholders. Responsibilities include setting company goals, formulating appropriate strategies, and understanding the organization's presence internationally. In order to move into corporate management roles, actuaries must bridge the gap between day-to-day firm activities and take an overarching view of the corporation. Our panel will present the challenges and opportunities associated with managing a company in today's global marketplace.

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

  • Understand the skills needed to transition into corporate management roles;
  • Demonstrate an understanding of corporate and leadership responsibilities; and
  • Identify how internal, external, and global market factors influence business decisions and strategies.

Country Relevance: Non-Nation Specific

Session Coordinator(s) William Rearden, ASA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Financial Reporting Section

Competency: Professional Values

Moderator(s): Leonard Mangini, FSA, FALU, FRM, MAAA

Presenter(s): Kerry A. Krantz, FSA, MAAA; Leonard Mangini, FSA, FALU, FRM, MAAA; Kevin Piotrowski, FSA, CERA, MAAA

Experience Level: Beginner-Intermediate

The presenters at this session discuss the role of one or more Qualified Actuaries as they interface with other company actuaries including the Appointed Actuary when completing the PBR Actuarial Report required by VM-31. We review the requirements of VM-G on governance and various ASOPs that might apply when completing this important PBR requirement.

At the conclusion of this session attendees will understand how professional standards apply to the PBR Actuarial Report including:

  • the role of the company, company actuaries, one or more Qualified Actuaries and the Appointed Actuary as discussed in VM-G,
  • the broad requirements of VM-31 regarding the PBR Actuarial Report, and,
  • which ASOPs might apply in preparing this report.

Country Relevance: U.S.

Session Coordinator(s) Leonard Mangini, FSA, FALU, FRM, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Taxation Section

Competency: External Forces & Industry Knowledge

Moderator(s): Jeffrey Thomas Stabach, FSA, MAAA

Presenter(s): Stephen Baker; Jeffrey Thomas Stabach, FSA, MAAA

Experience Level: Beginner

The Internal Revenue Code (IRC) sets forth a set of complex rules affecting life insurance companies and the products they sell. This session will explore the company and product tax related requirements imposed by the IRC that are of interest to actuaries, with the session in two parts:

Part 1 - Company Tax Overview Federal income taxes are often one of the largest expense paid by a U.S. life insurers, but they tend to be overlooked or simplified in actuarial work. The presenters  will provide an overview of key actuarial items impacting the determination of taxable income for life insurers, including the requirement for calculating tax reserves, the impact of changes in reserve basis, and the basics of capitalization of policyholder acquisition expenses (aka "Tax DAC").

Part 2 - Product Tax Overview Life insurance and annuity contracts provide for favorable tax benefits.  However, in order for policyholders to receive tax benefits, life products need to satisfy certain qualification requirements imposed by the Internal Revenue Code. The presenters  will provide an overview of (1) the policyholder tax treatment of life insurance and annuity contracts and (2) the qualification requirements imposed by the IRC in order for policyholders to receive these benefits.

This session is intended for actuaries with low to moderate knowledge of company and product tax related requirements and will help you learn key aspects of life insurance company and product taxation that can affect product design, pricing, valuation and modeling.

Country Relevance: U.S.

Session Coordinator(s) Philip Ferrari, ASA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Modeling Section

Competency: Communication

Moderator(s): Kimberly M. Steiner, FSA, MAAA

Presenter(s): Andrew Chong Jenkins, FSA, CERA, MAAA; Ben J. Quiner, FSA, CERA, MAAA; Kimberly M. Steiner, FSA, MAAA

Experience Level: Beginner-Intermediate

This presenters will describe how experience studies can be efficiently utilized for assumption setting in product development and considerations throughout the product development process. The presenters will discuss best practices for how a product development actuary can use, document and communicate assumptions that are used in their models.

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

  • Develop a plan for utilizing experience studies for product development;
  • Explain the process for documentation of assumptions in product development; and
  • Describe best practices and communication of product development assumptions.

Country Relevance: U.S. and Canada

Session Coordinator(s) Brenna R. Gardino, FSA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Technology Section; Predictive Analytics & Futurism Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Catherine J. Bierschbach, FSA, MAAA

Presenter(s): Catherine J. Bierschbach, FSA, MAAA; Karen M. Phelan; Patrick Sugent

Experience Level: All

Big Data has become a critical priority in every carrier's strategy. New data sources that can be accessed in an instant are transforming the industry and creating opportunities in practically every area of a life insurance company. In this session, we'll discuss the Big Data landscape, the technology that has enabled this revolution, the various sources of data and how to leverage data and analytics to improve product pricing, new business acquisition, and customer service. We'll share insights, research and examples to bring Big Data to life.

At this session, attendees will learn about the opportunities with Big Data and analytics and how it can helping companies compete today and in the future.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Wendy Chiwen Liang, FSA, CERA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Society of Actuaries

Competency: Strategic Insight and Integration

Moderator(s): Cynthia MacDonald, FSA, CFA, MAAA

Presenter(s): Roland Fawthrop, FSA, MAAA; Brian D. Holland, FSA, MAAA

Experience Level: All

The SOA's Individual Life Experience Committee will present the results of their most recent mortality study of fully underwritten individual life insurance. The data behind this study was collected by the statistical agent for the States of New York and Kansas, and covers observation years 2009 through 2013. The study shows how the mortality experience varies by numerous factors and compares the experience to recent standard mortality tables.

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

  • Identify the key drivers of individual life insurance mortality experience;
  • Interpret the results of the recent individual life mortality study; and
  • Evaluate the applicability of the study results for other uses.

Country Relevance: U.S.

Session Coordinator(s) Cynthia MacDonald, FSA, CFA, MAAA

Facilitator(s)

9:00 a.m. – 10:15 a.m.

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: External Forces & Industry Knowledge

Moderator(s): Daniel J. Rueschhoff, FSA, MAAA

Presenter(s): Emily Jeanne Lorentzen, FSA, MAAA; Jean-Francois D. Mannina; Daniel J. Rueschhoff, FSA, MAAA

Experience Level: All

The fiduciary rule released by the U.S. Department of Labor has the potential to dramatically change the annuity market, in terms of distribution process, product design and customer appeal. Presenters will discuss key aspects of the rule, elements that are being debated and potential impact to product development. 

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

  • Understand key elements of the fiduciary rule;
  • Understand implementation status; and
  • Evaluate potential impact of the fiduciary rule on product development.

Country Relevance: U.S.

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

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section; Entrepreneurial & Innovation Section; Marketing & Distribution Section

Competency: Strategic Insight and Integration

Moderator(s): Lin Ling Sun, FSA, CERA, MAAA

Presenter(s): Adam Erlebacher; Bryan Padgette; Matthew S. Wolf, FSA

Experience Level: All

With funding of insurance tech startups topping $1 billion in the first half of 2016, our industry is seeing new entrants and their ideas take shape. The presenters in this session will explore a selection of insurance startups that are tackling the challenges of new channels, leveraging big data and new types and structures of insurance. The panelists will share their experiences working in and with insurance technology startups.

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

  • Identify the forces that are driving the creation of insurance technology startup;
  • Demonstrate an understanding of the various players; and
  • Appreciate how actuarial professionals fit in the new insurance models.

Country Relevance: U.S. and Canada

Note: This session is a repeat of Session 49 PD.

Session Coordinator(s) Lin Ling Sun, FSA, CERA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: Results-Oriented Solutions

Moderator(s): Lisa M. Marquardt, FSA, MAAA

Presenter(s): Lisa M. Marquardt, FSA, MAAA; Jennifer L. McGinnis, FSA, CERA, MAAA; Kelly J. Rabin, FSA, MAAA

Experience Level: Intermediate-Advanced

What does In-force Management (IFM) mean to you? Does your company have an IFM department? How can different product types be impacted by IFM? How can actuaries contribute to IFM? This session will be an interactive forum that polls audience members on various topics of IFM, and provides a chance to share best practices and discuss industry challenges in a non-recorded session.

At the conclusion of the session, attendees will:

  • Learn what in-force management means for other companies;
  • How actuaries are involved in the process; and
  • Learn some best practices that can be taken back to their own companies.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Lisa M. Marquardt, FSA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Financial Reporting Section

Competency: Results-Oriented Solutions

Moderator(s): Carrie Lee Kelley, FSA, MAAA

Presenter(s): Carrie Lee Kelley, FSA, MAAA; Martin Snow, FSA, MAAA

Experience Level: All

The presenters in this session will discuss key questions that a pricing actuary should ask when pricing products under PBR. We will review the three types of valuation assumptions under PBR: prescribed, stochastic and prudent estimate; when and how they are used, and their impact on products and models. This will include a discussion of potential modeling assumptions or simplifications and the projection of the assumption sets for future valuation dates. The panel will discuss how pricing actuaries and valuation actuaries can work together to set common assumptions, build models and work with colleagues in Risk Management to govern assumptions and models.

At the conclusion of this session the attendee will understand which valuation assumptions are prescribed in a PBR world, which ones must be handled with stochastic models and which ones are prudent estimate assumptions with margins, enabling the attendee to begin thinking about the impact of these assumptions on initial and projected reserves and how to appropriately model them for pricing.  The attendee will know the critical questions that a pricing actuary must address in order to price a product under PBR and understand the unique challenges that come with building a suitable pricing model.  With this understanding, the attendee will be prepared to price products under PBR.

Country Relevance: U.S.

Session Coordinator(s) Leonard Mangini, FSA, FALU, FRM, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Education & Research Section; Financial Reporting Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): John K. McGarry, ASA, Ph.D.

Presenter(s): Mark William Birdsall, FSA, FCA, MAAA; MBA; Brian Matthew Hartman, ASA, Ph.D.

Experience Level: Intermediate-Advanced

We are exploring several possible simplifications, approximations, and modeling efficiency techniques allowed under VM-20 for determining statutory reserves for life insurance products. As noted in VM-20 Section 2G, an important component of this project is the development of corresponding regulatory demonstrations that these techniques do not understate the reserve by a material amount and that the expected value of the reserves calculated using these techniques is not less than the expected value of the reserve calculated without using these simplifications, approximations and modeling efficiency techniques.

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

  • Implement simplified methods in calculating their reserves under VM-20; and
  • Demonstrate that the techniques do not understate the reserves by a material amount.

Country Relevance: U.S.

Session Coordinator(s) Brian Matthew Hartman, ASA, Ph.D.

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Modeling Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Ramandeep Nagi, FSA, FCIA

Presenter(s): Ramandeep Nagi, FSA, FCIA; Hanh Thi Nguyen, FSA, MAAA; Alexander Zaidlin, FSA, ACIA, MAAA

Experience Level: Beginner

The presenters in this session will focus on actuarial software implementations and the lessons learned through the process. The discussion will focus on migration from an old modeling software platform to a new platform and how to make this a smooth transition. There will also be discussion of post-conversion considerations and the experience of day two issues with their models.

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

  • Describe best practices for a system conversion;
  • Identify methods to enable a smooth actuarial software implementation; and
  • Describe common day two issues and post-conversion considerations.

Country Relevance: U.S. and Canada

Session Coordinator(s) Brenna R. Gardino, FSA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Smaller Insurance Company Section

Competency: Results-Oriented Solutions

Moderator(s): Peter A. Hitchcock, ASA, MAAA

Presenter(s): Matthew R. Coleman, FSA; Michael L. Kaster, FSA, MAAA

Experience Level: Intermediate-Advanced

Smaller companies perceive the value of certain new products or markets but may struggle with development or access. Sometimes a consultant or reinsurer can fill the gap, but longer-term partnerships may be the optimal solution. The presenters will delve into options when internal resources are inadequate to build or maintain market access. Varieties of structures and their effects on the overall success of the endeavor will be discussed. In addition, the risks to consider and the rewards to expect will also be covered.

At the conclusion of the session, attendees will be able to better evaluate partnerships options for product development. They will be able to better compare this option to other options and be more equipped to determine if a partnership option may make sense.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Peter A. Hitchcock, ASA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Taxation Section

Competency: External Forces & Industry Knowledge

Moderator(s): Jeffrey Thomas Stabach, FSA, MAAA

Presenter(s): Kristin R. Norberg, ASA, MAAA; Alison Peak, JD

Experience Level: Beginner-Intermediate

The panel will discuss recent developments related to the taxation of life insurance and annuity contracts. The focus will be on recent IRS guidance, tax reform developments, and emerging products. For life insurance contracts, topics may include product-related aspects of principle-based reserves (PBR), including recent guidance on the 2017 CSO mortality tables under sections 7702 and 7702A. For annuity contracts, topics may include formal guidance recently published by the IRS on the tax treatment of amounts received as an annuity and the section 817(h) diversification rules, as well as recent informal guidance from the IRS relating to partial exchanges involving a deferred income annuity rider, 1035 exchanges, and the required minimum distribution (RMD) rules that apply to qualified annuities.

At the conclusion of the session, attendees will be aware of the recent developments regarding the taxation of insurance products and the industry impacts of those developments.

Country Relevance: U.S.

Session Coordinator(s) Philip Ferrari, ASA, MAAA

Facilitator(s)

10:30 a.m. – 12:00 p.m.

Presentation(s): View Presentation

Presenter(s): Thomas R. Dlouhy, FSA, MAAA

You never know when you take a new assignment what may be in store. Hear first-hand how perseverance and following the ASOPs navigated one actuary through testimony, the ABCD and one of the most challenging and memorable experiences of his career.

The luncheon is included in your registration fee. You may register your guest(s) for the luncheon by including $75 per person with your registration fee. Admission tickets are available for purchase at the meeting as space permits. Refunds will not be given.

Session Coordinator(s)

Facilitator(s)

12:15 p.m. – 1:30 p.m.

Credits: 1.50 CPD

Session Sponsor(s): Marketing & Distribution Section

Competency: Strategic Insight and Integration

Moderator(s): Eric T. Sondergeld, ASA

Presenter(s): Eric T. Sondergeld, ASA

Experience Level: Intermediate

It is said that imitation is the sincerest form of flattery. North American life insurers practice this art every day as they seek to remain competitive. As a result, the focus is often limited to the domestic market. The presenters will help us turn the lens to other parts of the world as we explore some of the many innovative product designs and distribution methods that exist outside of North America.

At the conclusion of the session, attendees will leave with a variety of product and distribution ideas and concepts that may be applicable to their companies, regardless of their geographic location.

Country Relevance: International

Session Coordinator(s) Andrew G. Steenman, FSA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: External Forces & Industry Knowledge

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

Presenter(s): Donna Christine Megregian, FSA, MAAA; Larry N. Stern, FSA, MAAA

Experience Level: All

The Society of Actuaries recently published research related to understanding the product development process. The comprehensive research investigates various activities through the US/Canada product development process, along with some international perspectives. This workshop will enable participants to hear about and discuss parts of the product development process that interest them and see results from the research.

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

  • Describe the steps of the product development process;
  • Evaluate options that may be available to improve the product development process; and
  • Determine actionable items that will impact the overall product development process.

Country Relevance: Non-Nation Specific

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

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: Results-Oriented Solutions

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

Presenter(s): Paul Fedchak, FSA, MAAA; Illya Golanek, FSA, CERA, MAAA; Jacqueline M. Keating, FSA, MAAA

Experience Level: Intermediate

Companies can implement VM-20 as early as 2017. While there have been research and educational materials produced to help actuaries and others better understand the implications and implementation of the new requirements from a financial reporting perspective, little has been developed emphasizing the product development actuary perspective. This SOA research project examines the impact of VM-20 from a product development actuarial perspective. The research will help actuaries and others enhance current practices to optimize pricing and product development activities within a VM-20 framework as well as enhance intracompany communication and efficiencies related to VM-20. 

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

  • Apply VM-20 concepts to their pricing processes;
  • Evaluate the impact of changing to VM-20 on profitability and pricing; and
  • Identify areas in which they will need to coordinate with the financial reporting area.

Country Relevance: U.S.

Note: This session is a repeat of Session 47 PD.

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

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Financial Reporting Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): TBD

Presenter(s): Michael L. Yanacheak, ASA, MAAA; others TBD

Experience Level: Beginner

The Life Actuarial Task Force (LATF) of the NAIC is charged with developing PBR for non-variable annuities. The American Academy of Actuaries' Annuity Reserve Work Group (ARWG) is working to develop a principle-based methodology for LATF to consider. Presenters at this session will cover current hot topics, including the recent NAIC exposure draft on Maximum Valuation Rates for Income Annuities.

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

  • Describe the basic components of PBR for non-variable annuities;
  • Evaluate many of the options that were considered in the development of the method; and
  • Compare the PBR method(s) to those currently prescribed for non-variable annuities.

Country Relevance: U.S.

Session Coordinator(s) David M. Ruiz, FSA, FIA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Investment Section; Joint Risk Management Section

Competency: Results-Oriented Solutions

Moderator(s): Ken Griffin, ASA, CFA, MAAA

Presenter(s): Ken Griffin, ASA, CFA, MAAA; Bogdan N. Ianev, FSA, MAAA; Henry Yim, FSA, CFA

Experience Level: Beginner-Intermediate

First, the presenters will discuss long term asset mix for an insurance company. Many people attempt to find a perfect solution. Unlike tactical calls on the trading floor, a good strategic asset allocation analysis oftentimes requires the understanding the company's liability and a good long term view of the economy. Many challenging issues arise during this analysis: Best method or metric to determine the optimal asset allocation strategy, alignment with risk tolerance, variation for inforce versus new business, asset classes and derivative instruments available and fit into the modeling exercise. We will attempt to answer these questions by comparing a few popular measures in an Efficient Frontier Analysis.

Second, the presenters will cover derivative from a practitioner's point of view. Derivatives are perceived as complex, risky investment vehicles from the public. However, derivatives are commonly used in various areas. Hedging is always a common topic in management discussion. Actuaries should keep current on this important topic. We will provide an overview on the current usage of derivatives in insurance companies. They will also touch on how derivatives are used in product development, the ongoing changes in the derivatives regulation and challenges faced by insurance companies from the practitioner's perspective.

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

  • Describe how to optimize investment strategy;  
  • Describe how to evaluate your current investment strategy in a risk/reward framework;
  • Describe how to identify all the key areas of using derivatives in insurance company; and
  • Understand the recent change evolution of the derivatives market and the key challenges and risks of using derivatives.     

Country Relevance: Non-Nation Specific

Session Coordinator(s) Suhrid Swaminarayan, FSA, FIA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Leadership and Development Section

Competency: Relationship Management

Moderator(s): Ying Zhao, FSA, MAAA

Presenter(s): John West Hadley

Experience Level: All

Have you ever faced a career dilemma, and wondered how to make the best decision, when every option seemed to have downsides? Based on the popular "What Would You Do?" series in the SOA Leadership and Development section's magazine The Stepping Stone , this interactive workshop will explore how to approach these situations. We will examine specific case studies, pros and cons, and bring to light hidden rationales that might escape the casual observer. Past case studies have considered: whether to demote or fire a difficult employee, performance reviews and their aftermath, interview challenges from both sides of the desk, evaluating job offers, a difficult product decision, how to build connections with the home office, and  career decisions.

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

  • Apply a broader range of techniques to evaluate and interpret difficult work/career decisions and situations;
  • Identify a broader range of potential solutions to such situations; and
  • Design better decisions in ambiguous situations.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Ying Zhao, FSA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Predictive Analytics and Futurism Section; Education & Research Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Ricardo Trachtman, FSA, MAAA

Presenter(s): Eileen Sheila Burns, FSA, MAAA; Jean-Marc Fix, FSA, MAAA

Experience Level: Beginner

Experts at this hands-on session will walk participants through the analytical process of developing a basic generalized linear model. Lessons learned will be practical but also provide insights about the process of approaching or evaluating a modeling project.

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

  • Set up a basic generalized linear model in R;
  • Answer questions about the key components of the model; and
  • Gain an understanding of the evaluation of predictive models.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Ricardo Trachtman, FSA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Society of Actuaries

Competency: External Forces & Industry Knowledge

Moderator(s): Cynthia MacDonald, FSA, CFA, MAAA

Presenter(s): Joel C. Sklar, ASA, MAAA; Sean Cody Souders, FSA, MAAA

Experience Level: All

The presenters at this session will cover the latest mortality studies of individual payout annuities and structured settlements. Both studies contain similar analyses as prior studies but now cover experience from 2009 to 2013. The individual payout study was expanded to include experience of joint annuitants and the experience on variable payout products. The structured settlement results are of particular interest because of the variation present in the prior study. These studies will compare current results to those of the prior studies.

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

  • Understand recent mortality trends in individual payout annuities and structured settlements; and
  • Apply these results as benchmarks to their own experience.

Country Relevance: U.S.

Session Coordinator(s) Korrel Rosenberg

Facilitator(s)

2:00 p.m. – 3:15 p.m.

Session Coordinator(s)

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

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

Competency: Strategic Insight and Integration

Moderator(s): Michelle Lynn Lerch, FSA, MAAA

Presenter(s): Jordan J. Carreira, FALU; William Moore; Craig Williamson, CFE, ALHC

Experience Level: Beginner-Intermediate

As the market evolves, the risk selection process must also evolve. Recent topics that have been receiving attention are developing products for the HIV market, managing risk of foreign connected policies, and fraud prevention and detection. 

At the conclusion of the session, attendees will develop a better understanding of the challenges and considerations around the risk selection process ultimately impacting assumptions and emerging experience.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Michelle Lynn Lerch, FSA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

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

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Timothy S. Paris, FSA, MAAA

Presenter(s): Kendrick D. Lombardo, FSA, MAAA; Timothy S. Paris, FSA, MAAA

Experience Level: Beginner-Intermediate

Data-driven understanding of policyholder behavior is critical for product pricing, principles-based approaches for reserves and capital, and prudent risk management. Frequent and detailed experience studies of own company and industry data, based on subject matter expertise and sophisticated statistical methods, are vital for the development of this understanding, and continued monitoring and refinements as market forces and environmental circumstances change.

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

  • Understand recent trends in policyholder behavior dynamics for variable and fixed indexed annuities based on industry-level data;
  • Understand fundamentals of predictive modeling techniques for VA and FIA products; and
  • Will be positioned to apply their own subject matter expertise to predictive modeling and assumption-setting for annuity policyholder behavior.

Country Relevance: U.S. and Canada

Session Coordinator(s) Timothy S. Paris, FSA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Financial Reporting Section; Product Development Section

Competency: External Forces & Industry Knowledge

Moderator(s): Michael L. Yanacheak, ASA, MAAA

Presenter(s): Brian George Michael Bayerle, FSA, MAAA; Donna R. Claire, FSA, CERA, MAAA; Michael L. Yanacheak, ASA, MAAA

Experience Level: Intermediate

The presenters at this session will provide an overview of recent developments in statutory valuation, U.S. GAAP valuation, and regulatory capital issues pertaining to life and annuity products.

At the conclusion of the session, attendees will be able to describe how recent developments in  statutory valuation, and U.S. GAAP valuation and - U.S. capital requirements impact pricing and product development in the U.S.

Country Relevance: U.S.

Session Coordinator(s) Leonard Mangini, FSA, FALU, FRM, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Entrepreneurial & Innovation Section

Competency: Strategic Insight and Integration

Moderator(s): Chin-Mei Yvonne Chueh, ASA, PH.D.

Presenter(s): Ata Azarshahi, ASA,MAAA; Melissa Carruthers, FSA, FCIA

Experience Level: All

Actuaries are constantly developing new products in response to shifting consumer demands. The presenters at this session will focus on hot new innovations that are disrupting the life and annuity product space. Attendees will learn how decision-makers are leveraging actuarial capabilities and predictive analytics to innovate cutting edge new products that creates value for customers that was not previously possible.

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

  • Describe product innovation for Life Insurance and Annuities;
  • Identify opportunities for demand innovation; and
  • Understand how predictive modeling is influencing product development.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Lori Weyuker, ASA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Joint Risk Management Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Dariush A. Akhtari, FSA, FCIA, MAAA

Presenter(s): Dariush A. Akhtari, FSA, FCIA, MAAA

Experience Level: Intermediate

The concept of market consistent valuation of liabilities has been of interest for over 10 years where numerous methodologies were proposed in Europe. Initially the concept of illiquidity premium was introduced which varied by products based on the certainty of the product's cash flows. Market consistent embedded value (MCEV) proposed by CRO Forum allows an illiquidity premium independent of the assets backing the liabilities resulting in an MCEV value that materially varies as market moves. As a result it has not been widely accepted in the U.S. In the session, a methodology for the calculation of this illiquidity premium will be discussed to produce a more stable MCEV value of a firm. The method will further be used to produce a more appropriate ALM for the firm.

The presenters in this session will explore an alternative approach, based on sound actuarial techniques, and will address concerns raised with current approaches. The approach will explore how the method could address many of the concerns with ALM, capital management, as well as a more appropriate approach to MCEV calculation.

At the conclusion of this session, attendees will understand how the method could address many of the concerns with ALM and capital management, as well as a more appropriate approach to MCEV calculation.

Country Relevance: International

Session Coordinator(s) Dariush A. Akhtari, FSA, FCIA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Society of Actuaries

Competency: Professional Values

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

Experience Level: All

In a perfect world, all ethical and professional issues would be black-and-white and decisions easy to make. In the world in which we live in, many ethical and professional issues are gray and decisions are difficult to make. This session will be an open-forum discussion of professionalism and the actuary. Questions, examples and brief case studies will be used to help focus the discussions.

At the conclusion of the session, the attendees will be able to more effectively apply the Code of Professional Conduct when providing actuarial services.

Country Relevance: Non-Nation Specific

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

Facilitator(s)

3:15 p.m. – 3:30 p.m.
3:30 p.m. – 4:30 p.m.
Want to learn more about a particular topic presented at the symposium? Join fellow attendees at this closing session. There will be tables set up by topic and an expert at each table leading the discussions.  

Session Coordinator(s)

Facilitator(s)