Valuation Actuary Symposium

 

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Day One | Day Two | Day Three

 

 

Monday, Aug. 28
7:00 a.m. - 4:30 p.m.
Registration is open for all meeting attendees.
7:00–8:00 a.m.

Session Sponsor(s): Financial Reporting Section

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

Presenter(s): Timothy C. Cardinal, FSA, CERA, MAAA; David M. Ruiz, FSA, MAAA, FIA

Please join the Financial Reporting Section for a breakfast featuring an update on section activities and discussions with your fellow section members.

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

Session Coordinator(s): James S. Hawke, FSA, MAAA

Presentation(s): View Presentation

Session Sponsor(s): Taxation Section

Moderator(s): Donald M. Walker, ASA, MAAA

Presenter(s): Jean Baxley

Please join us for breakfast and an opportunity to interact with Taxation Section members and hear about the latest tax developments coming out of Washington.

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

Session Coordinator(s): William B. Lehnen Jr., ASA, MAAA

8:00–9:30 a.m.

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): James R. Collingwood, ASA, MAAA

Presenter(s): James R. Collingwood, ASA, MAAA; John W. Robinson, FSA, MAAA, FCA; Jo Beth Stevenson, FSA, MAAA

With the adoption of VM-20, companies are spending significant time and resources determining how they will implement principle-based reserves (PBR). While it is tempting to focus on the calculation of reserves under PBR, companies should recognize that reporting and disclosure requirements are heightened considerably under PBR as well. Companies need to pay attention to the challenges of these requirements (VM-31, VM 50/51, VM-G) and integrate them fully within their adoption plans. This session focuses on what companies should be considering from a reporting and disclosures perspective as they develop and work through their PBR implementation plans. Common reporting and disclosure challenges and the impact of these on the implementation process and timeline are covered.

At the conclusion of the session, attendees will:

  • Understand the importance of knowing PBR reporting and disclosures requirements and expectations early in the PBR implementation process and planning
  • Know the importance of building PBR reporting and disclosure requirements into a PBR implementation roadmap; and
  • Learn about some common reporting and disclosures challenges and how to adequately prepare for these.

Experience Level: Intermediate

Session Coordinator(s): James Russell Collingwood, ASA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): Thomas A. Campbell, FSA, CERA, MAAA

Presenter(s): Donna R. Claire, FSA, CERA, MAAA; David E. Neve, FSA, CERA, MAAA

Experts at this session will provide an overview of current statutory valuation issues pertaining to life and annuity products (the major valuation issues for the current year are introduced and covered at subsequent sessions). The focus is on activities of the AAA relative to principle-based approaches, but other matters will be covered, including status of valuation manual adoption and related PBR issues, universal life with secondary guarantees, contingent deferred annuities, life risk-based capital and developments at the NAIC affecting life insurance companies.

At the conclusion of the session, attendees will have a broad understanding of current statutory valuation issues.

Experience Level: All

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

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Change is in the air! The traditional life insurance US GAAP guidance is being evaluated by FASB and targeted improvements ("TGAAP") have been exposed for comment and the industry has responded. Join us for an interactive discussion to determine how these changes could be interpreted and how they might impact non-participating life insurance and SPIAs payable for life actuarial balance a GAAP book profit. Focused topics of discussion will include: What are the targeted improvements identified by FASB for non-participating life insurance and SPIAs payable for life? (Differences between the HGAAP and TGAAP guidance); Simplified product introduction (Non-participating whole life and SPIA); Possible Non-Participating Whole Life); Methodologies (Benefit Reserves, and Deferred Acquisition Cost); Possible SPIA Methodologies (Benefit Reserves, Deferred Profit Liability, and Deferred Acquisition Cost); Operational questions and considerations (Data availability, System Updates, Accounting, and Actuarial policies); and GAAP Book Profits compare and contrast (HGAAP without PAD, HGAAP with PAD, and TGAAP).

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

  • Identify current difference between HGAAP and TGAAP for the targeted products;
  • Anticipate and explain the strengths and weaknesses of various possible interpretations of the TGAAP guidance;
  • Evaluate for their own companies and products, which interpretation makes sense and, for the simplified products discussed, how these elections impact GAAP book profits

Experience Level: Intermediate

Session Coordinator(s): Thomas Q. Chamberlain, ASA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): Brian Prast, FSA, MAAA

Presenter(s): Graham Green; Brian McBride, FSA, MAAA; Brian Prast, FSA, MAAA

Experts at this session will provide an overview of how tax reserves and related items impact the financials of a life insurance company. They will also summarize the tax authorities and resources available to the life insurance actuary and describe how reserves and other actuarial items are calculated and treated for tax purposes. This session was designed actuaries with low to moderate knowledge of tax reserves and related items.

At the conclusion of the session, attendees will gain information on the tax concepts that apply to life insurance companies, tax authorities and calculation of tax reserves.

Experience Level: Beginner - Intermediate

Session Coordinator(s): William B. Lehnen Jr., ASA, MAAA

Credits: 1.80 CPD

Competency: Technical Skills & Analytical Problem Solving

Presenter(s): Rowen B. Bell, FSA, MAAA; Scott O’Neil Jones, FSA, MAAA

In this session, we will discuss methodologies for accruing risk adjustment payment transfers when reporting the financials of commercial health products. This work requires actuarial considerations beyond just the transfer formula, including consideration for data quality and completeness, market morbidity changes over time, coding intensity among competing health plans, the impact of carrier insolvency, transitional plan policy, and others. While presenting methodology and considerations, we will discuss lessons learned from the first three years of risk adjustment, including specific case studies.

At the conclusion of the session, attendees will have learned:

  • several methodological approaches to estimating risk adjustment liabilities and assets based on available data; and
  • key considerations for developing estimates and interpreting the results.

Experience Level: Intermediate

Session Coordinator(s): Scott O’Neil Jones, FSA, MAAA

Credits: 1.80 CPD

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Juliet Michelle Spector, FSA, MAAA

Presenter(s): Matthew Hugh Morton, FSA, MAAA; Juliet Michelle Spector, FSA, MAAA

Want to improve your claim reserve estimates? This session will be a discussion of claim reserve assumptions, potentially including such items as: Indemnity vs expense reimbursement; Tail mortality and recoveries; IBNR; impact on margin in asset adequacy testing and GAAP loss recognition testing; cash flow testing and coordinating best estimate assumptions with pricing actuaries.

At the conclusion of the session, attendees will have knowledge to help them improve their claim reserve estimates.

Experience Level: Intermediate

Session Coordinator(s): Bruce A. Stahl, ASA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: Professional Values

Moderator(s): David C. Armstrong, FSA, MAAA

Presenter(s): David C. Armstrong, FSA, MAAA; Donna Christine Megregian, FSA, MAAA

This session will discuss two important actuarial standard of practice (ASOP) exposure drafts titled Models (Third Exposure Draft) and Setting Assumptions recently proposed by the Actuarial Standards Board. The proposed Assumption Setting ASOP will "apply to actuaries performing actuarial services which include setting and/or assessing the reasonableness of assumptions". The proposed Modeling ASOP will "apply to actuaries in all practice areas performing actuarial services when selecting, designing, building, modifying, developing, using, reviewing, or evaluating all types of models that are not simple models." Actuarial modeling and assumption setting are fundamental components of the process leading to the derivation of actuarial balances recorded in the financial statements. Actuaries use numerous models which have various applications (e.g. economic capital, GAAP reporting, pricing, etc.). It's important that the use of assumptions are appropriate in light of the model's intended purpose. In this post Sarbanes-Oxley world, the work of actuaries is getting more focused attention by regulators and the PCAOB. This further emphasizes the need for more guidance surrounding actuarial models and assumption setting. Focused topics of discussion will address what these newly proposed ASOPs mean for the actuary: Overview; Scope/applicability; Effective dates; Definitions; Gap analysis of existing guidance; Recommended Practices o Communication/Disclosures; and Implications for actuarial departments.

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

  • explain the proposed Modeling (Third Exposure) and Setting Assumptions ASOPs;
  • To identify opportunities to implement newly proposed guidance in their organizations; and
  • Evaluate their own models and assumption setting processes, to determine if there are existing processes that would benefit from improvement.

Experience Level: All

Session Coordinator(s): Maria Itteilag

Credits: 1.80 CPD

Competency: Technical Skills & Analytical Problem Solving

Presenter(s): Robert R. Haack, FSA, MAAA; Tara J.P. Hansen, FSA, MAAA; Patrick McAllister

This session will explore the risk management implications of the upcoming changes in statutory, GAAP, and IFRS financial reporting requirements for insurers. The implementation of principle-based statutory reserves, FASB targeted improvements, and IFRS 17 will create significant transformations in insurer's operations and risk management practices. For example, risk appetite measures, limits, and tolerances based on reported earnings will need to be revisited and reassessed. In addition, the greater dependence on actuarial models and judgment will require more robust model risk management practices. This session will provide insights on such challenges from a strategic and operational perspective.

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

  • Identify how risk management practices of insurance companies will evolve as a result of upcoming financial reporting changes;
  • Explore how valuation actuaries can incorporate risk management considerations into their decision making processes and priorities; and
  • Recognize key risk management challenges and areas of opportunity in financial reporting.

Experience Level: Intermediate

Session Coordinator(s): Francisco Javier Orduna, FSA, MAAA

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

Credits: 1.80 CPD

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Leonard Mangini, FSA, MAAA

Presenter(s): Christopher Halloran, ASA; Leonard Mangini, FSA, MAAA; Karen K. Rudolph, FSA, MAAA; William M. Sayre, FSA, MAAA

A session detailing how to calculate, understand, and explain reserve movements in a PBR world. The session will illustrate how to calculate expected and actual reserve movements, how to analyze the results (SOE/GBS/EBS), and finally how to explain the results to a range of audience members including a non-actuarial focus.

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

  • Evaluate reserve calculation;
  • Explain reserve movements; and
  • Explain PBR earnings.

Experience Level: Intermediate

Session Coordinator(s): Alexandre Lemieux, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): Thomas A. Campbell, FSA, CERA, MAAA

Presenter(s): Donna R. Claire, FSA, CERA, MAAA; David E. Neve, FSA, CERA, MAAA

Experts at this session will provide an overview of current statutory valuation issues pertaining to life and annuity products (the major valuation issues for the current year are introduced and covered at subsequent sessions). The focus is on activities of the AAA relative to principle-based approaches, but other matters will be covered, including status of valuation manual adoption and related PBR issues, universal life with secondary guarantees, contingent deferred annuities, life risk-based capital and developments at the NAIC affecting life insurance companies.

At the conclusion of the session, attendees will have a broad understanding of current statutory valuation issues.

Experience Level: All

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

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): Amber Ruiz, FSA, MAAA

Presenter(s): Chanseo Lee, FSA, MAAA; Amber Ruiz, FSA, MAAA

The Life Actuarial Task Force (LATF) of the NAIC is charged with developing PBR for non-variable annuities. The American Academy of Actuaries' Annuity Reserves Work Group (ARWG) is working to develop a principle-based methodology for LATF to consider. The first steps toward a revised Fixed Annuity valuation model have been taken, with LATF's release of the VM-22 Maximum Interest Rates for Income Annuities recommendations. This session will discuss the history of the VM-22 project, the current proposals, and the next steps toward principle-based reserving for fixed annuities. Presenters at this session will provide a progress update, discuss the approaches that have been considered, and discuss outstanding issues.

At the conclusion of the session, attendees will be able to describe the work done by LATF with respect to developing PBR for non-variable annuities.

Experience Level: All

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

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Presenter(s): Anne Potas

This is the typical update on upcoming GAAP issues. This session will focus on the relevant year-end 2017 issues (and not the FASB's targeted improvements to long-duration accounting covered in other sessions). Past sessions have focused on gains followed by losses, current audit focus, process and controls, etc. This session would continue that trend.

At the conclusion of the session, the attendees will be able to describe current GAAP issues.

Experience Level: All

Session Coordinator(s): Samuel J. Keller, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): Jacqueline F. Yang, FSA, MAAA, ACIA

Presenter(s): Liz Petrie; Mark Smith; Jacqueline F. Yang, FSA, MAAA, ACIA

Taxation experts at this session will provide an update on current tax developments affecting the life insurance industry, including: Principle-Based Reserves and how the Tax Reserves are impacted by this new reserve standard; Common reporting standards; An update on tax reform under the Trump administration; International tax issues; and Other current topics and legislative activities impacting company taxation.

At the conclusion of the session, the attendees will have information allowing them to better understand the impact of tax on product compliance, pricing and on significant tax issues in transactions.

Experience Level: All

Session Coordinator(s): William B. Lehnen Jr., FSA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): Robert A. Hanes, FSA, MAAA

Presenter(s): Jan Graeber, ASA, MAAA; Robert A. Hanes, FSA, MAAA; Brian D. Ulery, FSA, MAAA

In this session, speakers will address a variety of topics related to unprofitable closed LTC blocks. Topics will include profits followed by losses, including pooling (with other LTC products or with other lines of business), reserves, and effect of premium rate increases. Additionally, the panel will consider when an LTC insurer is insolvent and the impact on projection assumptions after premium rate increases (incidence, continuance, and utilization adjustments).

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

  • Describe how to valuate and manage a closed block of business, and
  • Decide when and how to file premium rate increases if necessary.

Experience Level: All

Session Coordinator(s): Bruce A. Stahl, ASA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): Glenn A. Tobleman, FSA, MAAA, FCAS

Presenter(s): Annette V. James, FSA, MAAA, FCA; James Morris

Risk focused examinations of insurance companies involves accountants, actuaries, and state examiners working together to assess the risk of a company. This session will provide a summary of what the regulators look for and what they focus on. This will involve the opinions of the different types of examiners and their sometimes different viewpoints. This session will be presented from a health perspective.

At the conclusion of the session, attendees will be able to understand what state regulators look for while assessing the risks of insurance companies and compare and contrast the different roles of the various regulators involved in an examination.

Experience Level: All

Session Coordinator(s): David M. Dillon, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Dorothy L. Andrews, ASA MAAA

Presenter(s): Dorothy L. Andrews, ASA MAAA; : Timothy S. Paris, FSA, MAAA

Understanding policyholder behavior is critical for product pricing, principle-based approaches for reserves and capital, and prudent risk management. Frequent and detailed company experience studies 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:

  • Identify classical behavioral theories. Understand recent trends in policyholder behavior dynamics for variable and fixed indexed annuities based on industry-level data;
  • Recognize fundamental predictive modeling techniques for VA and FIA products; and
  • Apply their own subject matter expertise to predictive modeling and assumption-setting to account for annuity policyholder behavior.

Experience Level: Intermediate

Session Coordinator(s): Dorothy Andrews, ASA, MAAA

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Presenter(s): Nancy E. Bennett, FSA, CERA, MAAA; Mark M. Yu, FSA, MAAA

NAIC's newly proposed RBC C1 capital charges are likely to become effective in 2018. In addition to changes to the C1 factors, the proposal also introduced additional granularity of fixed income credit rating reporting, from six to twenty categories. Without additional analysis, these varying levels of changes across rating categories may suggest that the industry would replace single "A" securities (relatively higher increases) with those of lower credit quality. However, the asset allocation needs to address the relative risk-adjusted returns, not just the relative capital charge changes, of various asset classes under a holistic asset optimization framework. A case study using U.S. Life industry portfolio will be presented to highlight how new RBC C1 factors would influence the efficient frontiers and asset allocations under various constraints.

At the conclusion of this session, attendees will be able to describe the impact of the NAIC proposed RBC C1 factors on asset allocation.

Experience Level: All

Session Coordinator(s): Stephen G. Smith, FSA, MAAA

11:45 a.m.–1:15 p.m.

Jeremy J. Brown, FSA, MAAA
2017 SOA President

brown-jerry The Society of Actuaries welcomes its president, Jeremy J. Brown , FSA, MAAA, who will speak about important issues facing the SOA and its members. This is your opportunity to gain insight into various SOA and industry topics.

 

Jason Schenker Next, hear from Jason Schenker , President of Prestige Economics, Chairman of The Futurist Institute, and the world's top ranked financial market Futurist. Bloomberg News has ranked Schenker one of the most accurate forecasters in the world in 36 different categories since 2011.

1:30–3:00 p.m.

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: Technical Skills & Analytical Problem Solving

Presenter(s): Woodrow M. Crouch, FSA, MAAA; Kevin Piotrowski, FSA, CERA, MAAA; Benjamin M. Slutsker, FSA, MAAA

With the adoption of VM-20, companies are in a unique position to make a strategic decision on when they will start reserving under a principle-based approach. Although many believe that by using the 3-year transition period their organizations can focus on other company initiatives and benefit by learning from challenges encountered by early adopters, there are steps that need to be taken now to ensure a smooth transition to PBR by the end the three-year transition. This session will focus on companies that have decided to "wait" to adopt PBR for one or more products until after 2017 and what activities they should be doing now prepare for a later adoption of PBR.

At the conclusion of the session, attendees will:

  • Know the importance of a PBR implementation roadmap and planning the transition to PBR;
  • Understand the timeline for getting PBR products to market and subsequently reserving for them;
  • Learn about some common roadblocks to implementation and how to build in adequate time to plan for these.

Experience Level: Intermediate

Session Coordinator(s): Kevin Piotrowski, FSA, CERA,MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): Jerry F. Enoch, FSA, MAAA

Presenter(s): Larry J. Bruning, FSA, MAAA; Rachel Hemphill, FSA, MAAA, FCAS; John W. Robinson, FSA, MAAA, FCA

Since the Valuation Manual became effective 1/1/2017, companies are increasing their preparation for PBR, and regulators continue to refine the requirements. This panel will provide the current status of amendments to the valuation manual. It will also provide company actuaries an opportunity to learn some regulators' perspectives and concerns, and to ask some questions about PBR. PBR is a challenge for companies and regulators, and this session should increase mutual understanding and help company actuaries and regulatory actuaries address their challenges cooperatively.

At the conclusion of the session, attendees will understand the current changes that are being considered for the Valuation Manual. They will be better able to view PBR from the perspective of those who will review and rely on their work. They will appreciate the challenges that PBR poses to the regulators and be better equipped to manage their relationships with regulators.

Experience Level: All

Session Coordinator(s): Jerry F. Enoch, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Presenter(s): Neel Patel, FSA, MAAA; Aaron Joseph Sarfatti, ASA

The NAIC has scheduled a series of Quantitative Impact Studies (QISs) for 2017. This will evaluate how proposed changes to Variable Annuity statutory valuation and RBC requirements will impact live reporting for some the largest companies in the VA market. This panel discussion will provide an overview of the project to-date, from its initiation in 2015, through the first proposed changes and subsequent testing and evaluation. Panelists will share key observations from recent QIS results.

At the conclusion of the session, the attendees will be able to describe the results of the recent NAIC Quantitative Impact Studies.

Experience Level: Intermediate

Session Coordinator(s): Robert K. Leach, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Presenter(s): Anne Potas

This is the typical update on upcoming GAAP issues. This session will focus on the relevant year-end 2017 issues (and not the FASB's targeted improvements to long-duration accounting covered in other sessions). Past sessions have focused on gains followed by losses, current audit focus, process and controls, etc. This session would continue that trend.

At the conclusion of the session, the attendees will be able to describe current GAAP issues.

Experience Level: All

Session Coordinator(s): Samuel J. Keller, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): Robert T. Eaton, FSA, MAAA

Presenter(s): Bryn T. Douds, FSA, MAAA; Robert T. Eaton, FSA, MAAA; Robert K. Yee, FSA, MAAA

This session on FASB Target Improvements is specifically designed for long-term care insurance but the concepts will be applicable to other lines of business. This session is designed to provide insight and support to addressing revised GAAP requirements as they relate to long-term care insurance.

At the conclusion of this session, attendees will be able to apply, interpret, and describe the FASB improvements and their effects.

Experience Level: Intermediate

Session Coordinator(s): Bruce A. Stahl, ASA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): Jacqueline Lee, FSA, MAAA

Presenter(s): James Morris; David Sherwood

The panel will provide a unique forum for regulators and CRO's to discuss how to best incorporate ORSA and ERM information into the financial examination and analysis process. There will be a discussion of the importance of each section of the ORSA as well as how to best leverage key information within each section. The panel will also discuss the lessons learned through the ORSA pilot project as well as the 2015 ORSA submissions, including best practices and improvements to the current process.

At the conclusion of the session, attendees will be able to evaluate the impact of ORSA and ERM on health insurance companies and identify the key issues as seen by state regulators and Chief Risk Officers.

Experience Level: All

Session Coordinator(s): David M. Dillon, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Dorothy L. Andrews, ASA, MAAA

Presenter(s): Talex Diede; Rena Kuliyeva, FSA; Richard Marshall Lagani; Alexander Jonathan Laurie, MAAA, FCAS

Predictive modeling is the latest tool in the insurer's arsenal, which derives deeper insights from data to extract more informational value. Predictive modeling techniques are being used to review assumptions more efficiently, develop risk margins, and to inform powerful business decision making. This session will provide guidance for implementing predictive modeling techniques to improve experience studies and set modeling assumptions for life and annuity products. Using a case study and real-world issues, we will walk through the predictive model development and validation process, explain how to interpret results, and discuss considerations for operationalizing the new assumption structure within a traditional valuation/ projection model.

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

  • Describe predictive modeling techniques to improve experience studies and setting modeling assumptions for life and annuity products;
  • Explain how to interpret results; and
  • Discuss considerations for operationalizing the new assumption structure within a traditional valuation/ projection model.

Experience Level: All

Session Coordinator(s): Dorothy Andrews, ASA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: Relationship Management & Interpersonal Collaboration

Moderator(s): Stefanie J. Porta, ASA, MAAA

Presenter(s): Ingrid H. Guttin, FSA; Scott D. Haglund, FSA, MAAA; Scott D. Houghton, FSA, MAAA

This session will delve into how the Auditor and the Valuation Actuary can improve their communications. We will discuss how the auditor can approach requests to make sure they receive what they need, and how the valuation actuary can prepare their work in anticipation of what auditors will require. This will discuss the audit of smaller companies, as well as larger companies.

At the conclusion of the session, attendees will have a better understanding of how to prepare work that achieves standards required by auditors.

Experience Level: All

Session Coordinator(s): Stefanie J. Porta, ASA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Presenter(s): Ritchie Hok, FSA; Lisa Marie Peterson, FSA, FCIA

The Office of the Superintendent of Financial Institutions (OSFI) is an independent federal government agency in Canada that regulates and supervises more than 400 federally regulated financial institutions and 1,200 pension plans to determine whether they are in sound financial condition and meeting their requirements. Federally regulated financial institutions include all banks in Canada, and all federally incorporated or registered trust and loan companies, insurance companies, cooperative credit associations, fraternal benefit societies and private pension plans. OSFI has developed a new standard capital test for life insurers, Life Insurance Capital Adequacy Test or LICAT, which will become effective on January 1, 2018. The development of the LICAT was a multi-year, multi-phase project. It represents an evolution in OSFI's regulatory capital expectations and takes into account developments in life insurance accounting and actuarial standards, lessons from evolving capital frameworks in other jurisdictions, and the global financial crisis.

At the conclusion of the session, attendees will be able understand the new LICAT and its key components, determine its potential impact on life insurance companies, and understand differences between the LICAT and other capital frameworks around the world.

Experience Level: All

Session Coordinator(s): Anna Beith

3:00–3:30 p.m.
A refreshment break is available for all attendees.
3:30 – 5:00 p.m.

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Presenter(s): Robert B. Crompton, FSA, MAAA; Chris Whitney, FSA, MAAA

Join us for the sequel to the 2016 workshop: PBR is Coming! In this workshop format session attendees will discuss how actuaries are implementing PBR. This workshop is intended for those who are at a beginning point in the implementation process.

At the conclusion of the session, attendees will be able to explain some of the issues in implementing PBR and potential solutions.

Experience Level: Beginner to Intermediate

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

Credits: 1.80 CPD

Competency: Technical Skills & Analytical Problem Solving

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

Presenter(s): Carrie Lee Kelley, FSA, MAAA; Karen A. King, FSA, MAAA

This session will provide an in-depth overview of setting mortality assumptions for VM-20 prudent estimates. The session will provide details on determining company experience, credibility, margins, and the appropriate industry table. This will include a discussion on the SOA's RR Tool for selecting the RR VBT tables. Discussion will also cover common challenges and emerging best practices.

At the conclusion of the session, attendees will be able to develop prudent estimate assumptions, select appropriate VM-20 industry tables using the SOA's RR Tool, and evaluate their mortality assumption for reasonableness.

Experience Level: Intermediate

Session Coordinator(s): Carrie Lee Kelley, FSA, MAAA

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Presenter(s): Richard Laurent Hayes, ASA, CERA

In 2015, the NAIC commissioned an initiative to identify changes to the statutory framework for variable annuities that can remove or mitigate the motivation for insurers to engage in captive reinsurance transactions. In September 2015, a third-party consultant engaged by the NAIC provided them with a preliminary report covering several sets of recommendations regarding AG 43 and C3 Phase II reserve and capital requirements. These recommendations generally focus on mitigating the asset-liability accounting mismatch between hedge instruments and statutory instruments and statutory liabilities, removing the non-economic volatility in statutory capital charges and the resulting solvency ratios and facilitating greater harmonization across insurers and products for greater comparability. An updated variable annuity reserve and capital framework proposal was presented at the August 2016 NAIC meeting followed by a 90-day comment period. This updated proposal included the initial recommendations from 2015, but also some new aspects. With many moving parts, some companies are unsure how to predict the magnitude and direction of VA reserves or capital movement, if adopted. This session will present a summary of the proposed reform as well as numerical results from a case study related to moving from the old to the proposed framework.

At the conclusion of the session, attendees will be able to: assess the potential impact of the proposed reform to NAIC VA reserves and capital to their product portfolio.

Experience Level: All

Session Coordinator(s): Richard Laurent Hayes, ASA, CERA

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): Marc Slutzky, FSA, CERA, MAAA, FCA

Presenter(s): Elizabeth K. Dietrich, FSA, CERA, MAAA

There are two proposed valuation bases that underpin the calculation of ICS 1.0, GAAP Plus and Market Adjusted Valuation MAV). This session will discuss adjustments necessary to adjust the GAAP balance sheet to the GAAP Plus balance sheet, and discuss the convergence of the balance sheets under the two bases.

At the conclusion of the session, attendees will have a better understanding of the use of the GAAP balance sheet for International Capital Standards.

Experience Level: All

Session Coordinator(s): Marc Slutzky, FSA, CERA, MAAA, FCA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): Mary Elizabeth Caramagno, FSA, MAAA

Presenter(s): Paul S. Graham III, FSA, MAAA; Mary Elizabeth Caramagno, FSA, MAAA; Dylan Strother, FSA, MAAA

Principle-based reserves have been adopted by most states and are operational. Experts at this session will provide an update on that process and explore the implications of PBR VM-20 on statutory and tax reserving. The Valuation Manual continues to be updated with clarifications needed as more companies start implementation of PBR.

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

  • Understand the current status of PBR;
  • Describe the effect on statutory valuation; and
  • Explain the implications with regard to tax reserves.

Experience Level: All

Session Coordinator(s): William B. Lehnen Jr. ASA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: Technical Skills & Analytical Problem Solving

Presenter(s): Jeanne Meeker Daharsh, FSA, MAAA; Paul Garofoli; Denise Liston; John Leo Timmerberg, ASA, MAAA

Accelerated Benefit Riders on Life Insurance are a rapidly growing area within life Insurance. The panelists will describe the fractional benefit, full benefit and lien structures of these riders, for both chronic illness and critical illness accelerated benefit riders. Panelists will explore the modeling, pricing, actuarial assumptions, valuation and regulatory environment of these products.

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

  • Compare the pros and cons or each rider structure;
  • Identify the appropriate modeling for each rider type; and
  • Be better prepared to assist in creating and designing new riders for their company.

Experience Level: Beginner to Intermediate

Session Coordinator(s): John Leo Timmerberg, ASA, MAAA

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): Jacqueline Lee, FSA, MAAA

Presenter(s): Annette V. James, FSA, MAAA, FCA; Jacqueline Lee, FSA, MAAA

This session will discuss early warning signs of insurance company insolvencies and provide a practical approach to application and tips in dealing with potential insolvencies. Additionally, this session will look at information that is embedded in the Health Insurance NAIC Annual Statement. It will include a review of an annual statement and risks that are found within in it. Learn from discussion by users of the Statement on how they use and interpret the information provided.

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

  • Explain the intricacies of annual statement reporting;
  • Interpret complex financial results; and
  • Assess the risks involved and identify when insurance companies are facing financial insolvencies.

Experience Level: All

Session Coordinator(s): David M. Dillon, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: Technical Skills & Analytical Problem Solving

Presenter(s): Trevor C. Howes, FSA, FCIA, MAAA; Benjamin Carl Farnsworth, FSA, CERA, MAAA; Jeffrey S. Roth, FSA, MAAA; Mandy Hoi Man Lee, FSA, MAAA

As the insurance industry continues to develop increasingly complex products and are challenged by the evolving regulatory requirements, many companies have undergone model conversion to create an integrated end-to-end solution for reserving, cash flow testing and financial reporting processes. This session explores best practices in relation to model conversion including: Collection and analysis of data; Development of testing strategy and timeline; Considerations when executing the conversion; Approaches to attribution analysis; System access and change controls; and Collaboration with various parties (executives, controllers, ITs, actuaries). This session is intended for audiences who are participating in a model conversion project and also those who are considering executing a model conversion.

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

  • Design a robust model testing strategy for model conversion;
  • Apply various approaches to attribute the differences between the current and future model results; and
  • Identify controls that are needed throughout the model conversion project.

Experience Level: All

Session Coordinator(s): Mandy Hoi Man Lee, FSA, MAAA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Marc Slutzky, FSA, CERA, MAAA, FCA

Presenter(s): Ryan David Krisac, FSA, MAAA; April Rijing Shen, FSA, CERA, MAAA; Uri Sobel, FSA, MAAA

Management of model development, maintenance, change processes and model execution are all key elements of having confidence in one's models. Presenters at this session will provide an overview of potential frameworks for developing, governing and validating models and managing assumptions and other model inputs across departments. They will use sample case studies to show how organizations have improved the model governance and validation process, including the way assumptions are approved and monitored.

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

  • Evaluate whether their organization has opportunities to restructure their assumption governance framework to streamline the assumption-setting process;
  • Identify weaknesses in their current assumption management process; and
  • Explain to both actuarial and non-actuarial executives the benefits of a formally defined assumption process framework.

Experience Level: All

Session Coordinator(s): Marc Slutzky, FSA, CERA, MAAA, FCA

Presentation(s): View Presentation

Credits: 1.80 CPD

Competency: External Forces & Industry Knowledge

Moderator(s): William M. Sayre, FSA, MAAA

Presenter(s): Mark E. Alberts, FSA, MAAA; Bryan Neil Amburn, FSA, MAAA

This session is designed for appointed actuaries new to the role. Presenters will provide broad overview of statutory requirements an appointed actuary must address.

At the conclusion of the session, attendees will be able to explain the basic statutory requirements an appointed actuary must address.

Experience Level: Beginner

Session Coordinator(s): Stephen L. Marco, ASA, CERA, MAAA

5:30–7:00 p.m.

Don't miss this networking opportunity. Relax, mingle and build professional connections and new friendships. Share your professional experiences with your peers and meet potential clients at this fun and useful event. Meeting badges are required for attendees and registered guests.

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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.