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Agenda Day Three

Tuesday, May 8
6:00 a.m. – 3:30 p.m.
6:00 a.m. – 7:00 a.m.

Session Sponsor(s): Actuary of the Future Section; Predictive Analytics & Futurism Section

Presenter(s): Ricardo Trachtman, FSA, MAAA

During this breakfast, an update on Actuary of the Future and Predictive Analytics & Futurism 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) Woolford Lennox London, ASA, 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): Lance R. Berthiaume, FSA, MAAA; Michelle Lynn Grusenmeyer, FSA, MAAA

Come join us to network and to catch up on the activities of the Financial Reporting Section and the Smaller Insurance Company Section.

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

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

Facilitator(s)

6:15 a.m. – 7:15 a.m.

Session Coordinator(s)

Facilitator(s)

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): Nicholas E. Carbo, FSA, MAAA

Presenter(s): Nicholas E. Carbo, FSA, MAAA; Douglas L. Robbins, FSA, MAAA

Experience Level: All

Through much of the Baby Boomer generation’s working lifetime, retirement planning focused on asset accumulation. Strategies like Dollar-Cost Averaging and Asset Diversification became well understood by nearly everyone in the retirement industry. As those assets move into the payout phase (post retirement), the appropriateness of those strategies becomes less clear. Presenters will aim to exhibit and explain how and why adding a Single Premium Immediate Annuity (SPIA) or Deferred Income Annuity (DIA) to a retirement portfolio can help to minimize a retiree’s chance of outliving his or her income, and why sellers of annuities should focus more heavily on these product offerings.

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

  • Identify the reasons why effective asset accumulation strategies may be ineffective in the decumulation phase of retirement;
  • Evaluate the benefit of using at least a portion of accumulated retirement assets to purchase a fixed income stream that the annuitant is guaranteed not to outlive; and
  • Explain the benefits of a SPIA/DIA focus to other industry practitioners.

Country Relevance: U.S. and Canada

Session Coordinator(s) Dean Andrew Kerr, FSA, ACIA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: External Forces & Industry Knowledge

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

Presenter(s): Thomas P. Edwalds, FSA, ACAS, MAAA; Kevin P. Larsen, ASA, MAAA

Experience Level: All

People are living longer, and insight into older ages and overall mortality improvement can help shape how insurance companies view their business. Presenters will discuss results of recent mortality research. Learn about the latest research on the SOA’s 1900 birth cohort project and mortality improvement trends in the U.S.

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

  • Describe the results from the SOA’s research project on older age mortality; and
  • Identify mortality improvement trends in the U.S.

Country Relevance: U.S.

Session Coordinator(s) Lindsay Keller Meisinger, FSA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Craig E. Hanford, FSA, MAAA

Presenter(s): Stephen Abrokwah, ASA, CERA, MAAA; Craig E. Hanford, FSA, MAAA; Nathan P. Schelhaas, FSA, MAAA

Experience Level: All

A number of studies, including those  developed by LIMRA and Swiss Re, estimate a global mortality protection gap  in excess of $86 trillion, with the U.S. alone accounting for approximately $21 trillion of the gap. Addressing this gap has been examined from a number of  angles, including increasing education and awareness efforts, and improving the customer buying experience by creating a more efficient process, all while trying to preserve the protective value of traditional underwriting. 

Through all these efforts, existing actuarial techniques are being supplemented with several new innovations  and data sources that are currently in various stages of adoption. The presenters will provide some customer and agent experiences in the buying process, as well as considerations of the various innovations being implemented to support a more effective end-to-end risk assessment approach.

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

  • Understand consumer and producer experiences with life insurance sales and various lessons learned;
  • Understand the various new innovations being currently deployed for risk assessment;
  • Identify the various data sources that are being used for predictive analytics in risk assessment;
  • Evaluate the various triage models being used for accelerated underwriting; and
  • Determine considerations to apply in pricing using the new tools and models.

Country Relevance: U.S. and Canada

Session Coordinator(s) Stephen Abrokwah, ASA, CERA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: Professional Values

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

Presenter(s): Donna Christine Megregian, FSA, MAAA; James A. Miles, FSA, MAAA; Michael W. Santore, FSA, MAAA

Experience Level: All

Seasoned presenters will discuss three important actuarial standard of practice (ASOP) exposure drafts titled: Pricing of Life Insurance and Annuity Products; Modeling; and Setting Assumptions; recently proposed by the Actuarial Standards Board.

Actuaries use numerous models which have various applications (e.g. economic capital, GAAP reporting, pricing, etc.). It's important that the use of assumptions is appropriate in light of the model’s intended purpose. Focused topics of discussion will address what these newly proposed ASOPs mean for the actuary.

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

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

Country Relevance: U.S.

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

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Reinsurance Section

Competency: External Forces & Industry Knowledge

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

Presenter(s): Wenan Fei, FSA, CERA, MAAA; Darryl Herrick; Michael L. Kaster, FSA, MAAA; Symeon Andrew Williams, FSA, MAAA

Experience Level: Intermediate

The annuity reinsurance market continues to evolve, and reinsurance transactions have been more prevalent over the last 12 months. In this session, industry experts will give an update on the most recent activity, what is driving the appetite for annuity reinsurance, and discuss the various alternatives available for all types of annuity products being reinsured.

At the conclusion of the session, attendees will be able to describe Annuity Reinsurance Market conditions, reinsurance trends, and how to effectively manage surplus related to annuities.

Country Relevance: U.S.

Session Coordinator(s) Michael L. Kaster, FSA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Investment Section

Competency: Strategic Insight and Integration

Moderator(s): Suhrid Swaminarayan, FSA, FIA

Presenter(s): Vinaya K. Sharma, FSA, CERA; Weiwei (Walter) Wang, FSA, CERA, MAAA

Experience Level: Intermediate

In this session, presenters will discuss portfolio construction considering economic and regulatory capital constraints. Regulatory Capital is unavoidable and is usually a binding constraint at the portfolio level. Economic Capital is a more reliable measure of risk and can constrain at sub-portfolio levels. The dilemma is how to come up with a business plan that optimizes appropriate objective measures while considering regulatory capital requirements. 

The first presenter will use different approaches to address the risk-value trade-off of different asset portfolios. He will also look at how recent and pending regulatory changes will impact optimal strategies. The second presenter will consider optimizing economic value while considering regulatory capital requirements, thinking of this as a risk-return optimization problem, and will present a case study which demonstrates the merits of a unified approach.

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

  • Understand different methodologies for optimization for solving the life insurance asset-liability management problem;
  • Examine the impact of different objective functions for the optimization; and
  • Understand the directional impact of the proposed NAIC C1 factors on preferred securities in the portfolio.

Country Relevance: U.S.

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: Communication

Moderator(s): Ying Zhao, FSA, MAAA

Presenter(s): Jan Sugar

Experience Level: All

It has been encoded in us since the beginning of time and our brains are wired for it – we are eager consumers of stories from an early age. Film director Jean Luc Godard said, “Sometimes reality is too complex. Stories give it form.” Actuarial tables can be daunting, and for non-actuaries reading actuarial reports, the reality of the numbers can be far too complex.

While working with numbers sometimes actuaries are disconnected from the real impact their work and their products can have on human lives. Stories can create a bridge to understanding and an opportunity for conversation, growth, and greater service to companies and customers. Using tools and strategies both modern and ancient, presenters will focus on bringing numbers to life to create more meaning for managers, colleagues, customers, and leaders.

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

  • Explain why story is a powerful addition to actuaries’ toolkits;
  • Know the value and begin to implement the strategy of speaking and writing differently to a variety of audiences; and
  • Apply principles of storytelling to their own work to offer data that creates insight and meaning.

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): Smaller Insurance Company Section

Competency: External Forces & Industry Knowledge

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

Presenter(s): Lloyd Campbell-Gibson, FSA; Anthony Alex Silva, FSA, MAAA; Darrell D. Spell, FSA, FLMI, MAAA

Experience Level: Beginner-Intermediate

Policy or Rider? Life insurance products have been more complicated and now include specified disease (e.g., critical illness and cancer) coverage as a policy or a rider. The types of information needed to develop and market these products can be limited. There are common elements  and considerations that should be considered as an organization decides on whether, when and how to price and market these products. Attend this session to learn more about these considerations and the differences in pricing practices in developing specified disease riders or policies.

At the conclusion of the session, attendees will be able to better understand pricing and marketing considerations for specified disease riders or policies.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Michelle Lynn Grusenmeyer, FSA, 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: Results-Oriented Solutions

Moderator(s): Lindsay Keller Meisinger, FSA, MAAA

Presenter(s): Michael Anthony Cusumano, FSA; Katherine (Warner) McLaughlin, FSA, MAAA; Erin Colleen Wright, FSA, MAAA

Experience Level: All

Many companies contribute to a variety of industry studies, experience studies sponsored by reinsurers and consultants and statistical agent data calls. Having a shared understanding of experience studies data would improve efficiency, promote better communication and facilitate deeper understanding of the industry experience. VM-51 was designed in part to aid companies in the collection of experience data in a format specified for PBR purposes. This data format is used for industry experience analysis but has limitations.

Presenters will evaluate the current practice in preparing experience data, discuss the limitations and potential improvements to a common format for experience analysis, and brief the regulatory activities to better capture the experience data.

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

  • Identify the main features of VM51; 
  • Explain the limitations of using VM51 for experience analysis; and
  • Determine potential solutions for experience study common formats.

Country Relevance: U.S.

Session Coordinator(s) Lindsay Keller Meisinger, 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): Amber Ruiz, FSA, MAAA

Presenter(s): Chanseo Lee, FSA, MAAA; Bryan Christopher Lindsley, FSA, MAAA

Experience Level: Beginner-Intermediate

LATF's VM-22 Subgroup continues to work on the development of a principle-based reserving (PBR) methodology for non-variable annuity products. Presenters provide an update on the status of VM-22 and shares possible impacts, with a particular focus on product development. In particular, (1) a stochastic scenario approach is considered for Fixed Indexed Annuities (FIAs) with guarantee risks, and (2) a dynamic valuation rate will be effective January 1, 2018. Presenters will share a summary of the proposed methodology and standards, present example products and how they would be addressed, and look forward at what is still to come.

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

  • Understand the main components of VM-22;
  • Describe the impact of VM-22 on Fixed Annuity (FA) and Fixed Indexed Annuity (FIA) pricing; and
  • Evaluate potential product design impacts of VM-22, such as managing the PBR requirement based on multiple stochastic scenarios.

Note: This session will be repeated on, Tuesday, May 8, from 3:00 to 4:15 p.m. See Session 75 PD.

Country Relevance: U.S.

Session Coordinator(s) Dean Andrew Kerr, FSA, ACIA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Marketing & Distribution Section

Competency: External Forces & Industry Knowledge

Moderator(s): William Gus Mehilos, FSA, MAAA

Presenter(s): William Gus Mehilos, FSA, MAAA; Stephen Rowley; Michael W. Santore, FSA, MAAA

Experience Level: Beginner-Intermediate

The worksite life market has boomed in the recent years as carriers seek to complement their worksite supplemental health sales, and to meet a growing market need. Presenters will provide perspectives from a worksite life carrier on recent product trends, as well as a consultant on the results of a recently-released survey of major worksite life carriers. They will also discuss what has moved the drivers of market movements to certain offerings, and what the market may look like in the future.

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

  • Distinguish the voluntary worksite life market trends from those in the true group market;
  • Appreciate the trends in products and sales of the worksite life market; and
  • Contextualize key findings from a survey on the worksite life market.

Country Relevance: U.S.

 

Session Coordinator(s) Robert T. Eaton, FSA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Reinsurance Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Robert E. Winawer, FSA

Presenter(s): Leonard Mangini, FSA, MAAA; Timothy S. Paris, FSA, MAAA

Experience Level: Beginner-Intermediate

Complex long-term products with a short history and interrelated policyholder options can be particularly challenging for those responsible for experience studies and assumption models. Sophisticated data analytics techniques in conjunction with own-company and industry data, can dramatically improve these processes, providing greater insights into the experience data, more clarity in areas where expert actuarial judgment is needed, and even the opportunity to reinsure these risks. Presenters will use policyholder behavior data and examples from the variable annuity, fixed indexed annuity markets and life insurance markets.

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 and ways to utilize own-company and industry-level data and their own subject matter expertise in this context; and 
  • Identify opportunities to reinsure these risks.

Country Relevance: Non-Nation Specific

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

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Actuary of the Future Section; Education & Research Section

Competency: Technical Skills & Analytical Problem Solving

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

Presenter(s): Jeffrey A. Beckley, FSA, MAAA; Mary R. Hardy, FSA, CERA, FIA; Philip Douglas Rant, FSA, MAAA; Lina Xu, FSA, MAAA

Experience Level: All

With the changes to the SOA qualification requirements, this session will address how university and industry actuarial programs are adapting.  Presenters will discuss the following questions: 

  1.  How are universities adapting their programs to fit the changing actuary (i.e., are exam requirements for graduation changing, centers of excellence designations, incorporating more Excel/computer science courses)?
  2. What do employers wish universities were covering that they aren’t?
  3. For the university perspective, how have hiring standards changed over the past decade (i.e., exam requirements for entry, entry level role descriptions)?
  4. How have employer actuarial student programs evolved over the past decade (i.e., how to handle more frequent exam sittings, various raises/bones provided, general overview of exam time)?

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

  • Compare actuarial education mandates among three leading universities;
  • Determine how employer actuarial programs evolve as the SOA evolves; and
  • Evaluate how prepared actuarial students are for the SOA qualifications based on the support they receive from university and corporate actuarial programs.

Country Relevance: U.S.

Session Coordinator(s) Woolford Lennox London, ASA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Investment Section; Financial Reporting Section

Competency: External Forces & Industry Knowledge

Moderator(s): Erik J. Thoren, FSA, CERA, MAAA

Presenter(s): Jason Celente; Hal Warren Pedersen, ASA; Francis Rybinski, CFA

Experience Level: All

Multiple perspectives will be provided on the factors that are driving global interest rates in today's economic environment. Presenters will discuss the historical evolution of interest rates in developed markets, the shifting landscape in the current environment, and what savers (particularly insurers and annuity providers) can do with this information.

At the conclusion of the session, attendees will be able to understand the current and evolving interest rate environment for providers of insurance and annuity products.

Country Relevance: U.S. and Canada

Session Coordinator(s) Suhrid Swaminarayan, FSA, FIA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Modeling Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Joshua S.Y. Chee, FSA

Presenter(s): Joshua S.Y. Chee, FSA; Sean Michael Hayward, FSA, MAAA; Michael Porcelli, FSA, MAAA

Experience Level: Intermediate

In reaction to a spate of model conversion activity and rising acceptance of model risk management techniques, many companies have, or are in the process of, centralizing their modeling function to accommodate both governance and efficiency demands. These operating model changes have produced a wide range of questions and issues, such as division of labor, roles and responsibilities, selection of tasks to keep decentralized, among others. Presenters will frame a series of key modeling function considerations, and share lessons learned with the audience.

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

  • Describe the recent activity in the industry around changes in modeling functions;
  • Explain the key considerations when evaluating modeling functions; and
  • Develop an understanding of lessons learnt from firms which have moved to a centralized modeling function.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Joshua S. Y. Chee, FSA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Predictive Analytics and Futurism Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Dan Kim, FSA, CERA, MAAA

Presenter(s): Dan Kim, FSA, CERA, MAAA; Anthony D. Green, FSA, CERA, FCA, FRM, MAAA, MPhil

Experience Level: All

Machine learning techniques including predictive modeling are getting popular in life and annuity insurance underwriting, pricing and valuation. The same is true for risk management and risk calibration purpose. Presenters will illustrate some of machine learning techniques and how they can be used for the risk management purpose. Examples will include how a predictive model that is used for a best estimate assumption can be used to develop risk margin and inform risk management on the accuracy or uncertainty of its predictions.

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

  • Understand applications of machine learning techniques in risk management;
  • Understand the uncertainty of predictions of a generalized linear model (GLM); and
  • Understand a difference between the confidence interval of an estimate and the prediction interval.

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): David N. Wylde, FSA, MAAA

Presenter(s): Constance E. Dewar, FSA, MAAA; Allen M. Klein, FSA, MAAA; Scott Edward Morrow, FSA, FIA, MAAA

Experience Level: All

Presenters will share the results from the latest round of surveys completed by the SOA Committee on Life Insurance Mortality and Underwriting Surveys.  The presentations will include:

  • Recent trends in older age underwriting
  • Current company practices on predictive analytics programs and accelerated underwriting
  • Drivers of early duration claims and risk mitigation processes
  • How companies have been improving the new business process

Please join us for this information filled session on several current hot industry topics.

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

  • Describe some of the drivers behind early duration claims and risk mitigation processes dealing with early duration claims; 
  • Describe the various changes life insurance companies have recently made, or are thinking of making, to improve the new business process; 
  • Describe new and recent trends in older age underwriting; and 
  • Describe predictive analytics, accelerated underwriting and enhanced underwriting programs that have been adopted by companies.

Country Relevance: U.S. and Canada

Session Coordinator(s) Korrel Rosenberg

Facilitator(s)

10:30 a.m. – 12:00 p.m.

Presenter(s): Hanlie Van Wyk

“Once upon a time, there lived an actuary, who loved to tell tales”, started almost no stories ever! By the end of this presentation, we expect there will be many such stories.

This talk explores the “formula” of storytelling, demonstrates with a few illustrative stories why they are the key to being heard, and to having what you say be acted upon. In a world dominated by numbers, logic, reports and statistics, stories provide the most efficient vehicle to move ideas, and audiences, emotionally and into new actions. 

You might even leave with a new story about who YOU are, to use when you next introduce yourself.

The luncheon is included in your registration fee. You may register your guest(s) for the luncheon by including $80 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.

Presentation(s): View Presentation

Credits: 1.50 CPD

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

Competency: Results-Oriented Solutions

Moderator(s): Dean Andrew Kerr, FSA, ACIA, MAAA

Presenter(s): Dean Andrew Kerr, FSA, ACIA, MAAA; Jennifer L. McGinnis, FSA, CERA, MAAA; Larry N. Stern, FSA, MAAA

Experience Level: Intermediate

Life insurance products have a variety of features that are considered non-guaranteed elements (NGEs), and the industry has a long history of managing these. From dividends to credited rates, post-level term premiums to Cost of Insurance (COI) charges, there are common considerations in deciding whether, when, and by how much to adjust these NGEs. Further, as companies consider options for managing NGEs, they must keep in mind the valuation and reporting environments under which they operate. 

Whether GAAP, STAT, or economic, there are particular considerations to take into account both at time of issue and during the inforce life of the policy. PBR, FASB, and IFRS bring with them elements that may influence product valuation and a company’s approach to NGE management. Attend this session to learn more about best practices in assessing, managing and accounting for NGEs.

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

  • Identify NGEs and options for managing them; Understand considerations for valuing NGEs under different bases;
  • Recognize how valuations may be impacted by changes to regulations and reporting guidance; and
  • Consider the value of making changes to NGEs under various bases.

Country Relevance: U.S.

Session Coordinator(s) Dean Andrew Kerr, FSA, ACIA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: External Forces & Industry Knowledge

Moderator(s): Prince Rajbhandari, ASA, CERA

Presenter(s): Emily K. Kessler, FSA, EA, FCA, MAAA; Alyssa Tam

Experience Level: All

Technology has been a major disruptor for many industries. Recent growth in the InsurTech space shows that life insurance is no exception. But does InsurTech need to be seen as a replacement for current insurance providers? Incumbent insurers can use InsurTech to change internal procedure, and the way they interact with the public, including marketing, underwriting and ongoing engagement. Presenters will focus on InsurTech opportunies in these areas, how they are being used to facilitate insurance growth, and how they are relevant to actuaries.

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

  • Demonstrate knowledge of InsurTech environment;
  • Identify key areas of InsurTech applications; and
  • Determine areas where InsurTech could be used to facilitate insurance within the attendee's organization.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Paul Fedchak, FSA, MAAA

Facilitator(s)

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: External Forces & Industry Knowledge

Moderator(s): Curtis Matthew Clingerman, FSA, MAAA

Presenter(s): Curtis Matthew Clingerman, FSA, MAAA; Timothy O. Wood, FSA, MAAA

Experience Level: Intermediate-Advanced

Insurance companies are dealing with the many aspects of nonguaranteed element management and the reflection of those nonguaranteed elements in illustrations.  New regulations are making it more time consuming to comply with an already growing inforce policy form block.  Presenters at this session will discuss the new American Academy of Actuaries’ practice note, New York regulation 210, and the NAIC illustrations workgroup, as well as providing a forum to ask questions about the illustrations model regulation and ASOP 24.

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

  • Describe some of the changes that have occurred in the practice note and how they may help;
  • Evaluate options to be compliant with current and newer regulatory changes; and
  • Apply the discussion topics to illustration testing and compliance throughout the company.

Country Relevance: U.S.

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

Facilitator(s)

Credits: 1.50 CPD

Session Sponsor(s): Reinsurance Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Marianne C. Purushotham, FSA, MAAA

Presenter(s): Todd Giesing; Marianne C. Purushotham, FSA, MAAA

Experience Level: Beginner-Intermediate

Presenters will review the results of recent ongoing studies of policyholder behavior experience for life insurance and annuity products including individual life insurance lapse/surrender and premium persistency as well as individual annuity surrender/lapse and utilization of guaranteed living benefits. These studies provide an industry benchmark for companies to aid in the assumption setting process. Key drivers of experience will be examined in the context of predictive modeling techniques.

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

  • Understand the policyholder behavior experience results at an industry level including key drivers;
  • Compare drivers of experience across different product designs; and
  • Compare their individual company results to recent industry data.

Country Relevance: U.S. and Canada

Session Coordinator(s) Marianne C. Purushotham, FSA, MAAA

Facilitator(s)

Credits: 1.50 CPD

Session Sponsor(s): Financial Reporting Section

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Simpa A. Baiye, FSA, MAAA

Presenter(s): Alfred Au, FSA, MAAA; Simpa A. Baiye, FSA, MAAA; Peter C. Carlson, FSA, MAAA

Experience Level: Intermediate

Variable annuity reserving and risk-based capital reforms are underway and will have a significant impact on product design, reserving, capital management, and financial risk management. Presenters will discuss recent proposals to revise Actuarial Guideline 43 and C3 Phase II, and assess their hypothetical impact on insurance carriers via a case study.

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

  • Describe the current status of VA Reserve and Capital reform;
  • Understand the impact of VA Reserve and Capital reform on product profitability; and
  • Design VA products with the new framework in mind.

Country Relevance: U.S.

Session Coordinator(s) Simpa A. Baiye, FSA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Investment Section

Competency: Strategic Insight and Integration

Moderator(s): Suhrid Swaminarayan, FSA, FIA

Presenter(s): Rishi Goel; John Petchler

Experience Level: Intermediate

With low yields persisting within available traditional fixed income asset classes, life and health insurance companies are increasingly looking towards illiquid asset classes for an increase in investment yield. Presenters offer a survey the main features of investment grade (IG) private placement bonds and below investment grade (BIG) private debt and distressed debt. They will compare them with available public bond alternatives.

The presenters will examine the motivations for insurance companies to invest in private debt and the legal, diligence and operational requirements to maintain a private debt portfolio. They will also conduct a 2017 market review for both private placements and BIG/distressed and look forward to 2018’s likely new USD and non-USD placement issuance and which industry sectors are likely to issue. The presenters will also cover their risk and reward characteristics, and the structural intricacies of the various IG and BIG debt types and whether there is sufficient compensation for illiquidity and other risks.

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

  • Evaluate private debt in the context of investing to meet life insurance liabilities; and
  • Compare and contrast the suitability of these investments in comparison to traditional fixed income asset classes.

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: Communication

Moderator(s): Kelly M. Hennigan, FSA

Presenter(s): Stephen J. Bochanski, FSA, CERA, MAAA; Kelly M. Hennigan, FSA; David N. Karo, ASA, MAAA; Mitchell Bischoff Stephenson, FSA, MAAA

Experience Level: All

As communication skills are essential to all actuaries and business leaders, panelists will speak to the importance of verbal, non-verbal, and written communications skills. Whether you are presenting to a large group, collaborating in a small meeting, making a recommendation to your colleagues, or sending out an email update to senior management, effectively communicating your message to the audience is critical to an actuary’s success. Your communication style affects how others perceive you, how well you can accomplish your day-to-day work, and how influential you can be inside and outside your organization.

Topics covered will include:

  • Do’s and don’ts of verbal, non-verbal, and written communications;
  • Ways to most effectively communicate with senior management;
  • Common communication pitfalls actuaries face and how to avoid them; and
  • Ways to enhance your personal verbal and written communication style when working with different audiences.

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

  • Identify common communication pitfalls actuaries face and how to avoid them;
  • Communicate effectively with senior management; and
  • Develop their personal verbal and written communication style to be effective when working with different audiences.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Kelly M. Hennigan, FSA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Long Term Care Insurance Section

Competency: Strategic Insight and Integration

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

Presenter(s): Robert T. Eaton, FSA, MAAA; Carl A. Friedrich, FSA, MAAA; Debra Leigh Krall, FSA, MAAA

Experience Level: Intermediate

Many life and annuity insurers are offering combination life plus LTC or chronic illness products ("combo products") in order to stay competitive in the market. What risks are inherent in these products that the insurer may not be fully considering? Presenters will discuss the pricing risks unique to the various types of combo product financing options, actuarial present value, dollar for dollar explicit premium and lien approaches. Presenters will also discuss how combo products will impact other facets of the company, from valuation to claims payment and the operational risks the carrier is accepting when offering combo products.

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

  • Describe the various methods of financing combo products;
  • Explain the various risks inherent in each pricing method; and
  • Discuss the downstream operational implications of offering new combo products.

Country Relevance: U.S.

Session Coordinator(s) Ronald R. Hagelman, Jr., CLTC, CSA, LTCP

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

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

Competency: External Forces & Industry Knowledge

Moderator(s): N. Shane Leib, FSA, MAAA

Presenter(s): Carrie Lee Kelley, FSA, MAAA; Kimberly M. Steiner, FSA, MAAA

Experience Level: Beginner-Intermediate

As an actuary, do you have adequate controls over your experience studies and assumption setting processes in light of new regulations (PBR), focus on controls and external audit? Let's explore the background for increased review over experience studies and assumption setting practices. For PBR, there is a need to produce more current experience studies and there has been more focus from external parties including regulators and external auditors.

As there is increasing scrutiny over these area, and as we continue to focus on controls, you’ll hear about current industry practices for companies that have limited resources and views from the external parties. Have a conversation with an actuary and these external parties to discuss this change in focus and industry practice.

At the conclusion of the session, attendees will be able to better understand control requirements for experience studies and assumption setting processes from different points of view, and apply these their own company.

Country Relevance: U.S.

Session Coordinator(s) Jacqueline F. Yang, FSA, MAAA

Facilitator(s)

2:00 p.m. – 3:15 p.m.

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: Results-Oriented Solutions

Moderator(s): Julianne A. Callaway, FSA, ACAS, MAAA

Presenter(s): Julianne A. Callaway, FSA, ACAS, MAAA; Christopher John Hessenius, FSA, CERA, MAAA; Kyle A. Nobbe, FSA, MAAA

Experience Level: All

Disruption in the financial services industry can take many forms including the creation of planning tools to provide value to insurance consumers beyond insurance protection and product development based on a hollistic view of wellness. Insurers are using data and technology to encourage financial responsibility from overwhelmed consumers facing competing financial priorities. Planning tools can help consumers research, plan and coordinate resources providing tangible benefits beyong protection. Customer focused product development can engage consumers and encourage improved health. The presenters will explain how disruption is changing the product development process today with a series of case studies on disruption in the financial services industry.

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

  • Explain how wellness spans health and wealth;
  • Explain how technology and data are being used to create disruption; and
  • Explain how design with the customer experience in mind varies from other traditional delivery methods.

Country Relevance: U.S.

Session Coordinator(s) Lindsay Keller Meisinger, 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): Amber Ruiz, FSA, MAAA

Presenter(s): Chanseo Lee, FSA, MAAA; Bryan Christopher Lindsley, FSA, MAAA

Experience Level: Beginner-Intermediate

LATF's VM-22 Subgroup continues to work on the development of a principle-based reserving (PBR) methodology for non-variable annuity products. Presenters provide an update on the status of VM-22 and shares possible impacts, with a particular focus on product development. In particular, (1) a stochastic scenario approach is considered for Fixed Indexed Annuities (FIAs) with guarantee risks, and (2) a dynamic valuation rate will be effective January 1, 2018. Presenters will share a summary of the proposed methodology and standards, present example products and how they would be addressed, and look forward at what is still to come.

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

  • Understand the main components of VM-22;
  • Describe the impact of VM-22 on Fixed Annuity (FA) and Fixed Indexed Annuity (FIA) pricing; and
  • Evaluate potential product design impacts of VM-22, such as managing the PBR requirement based on multiple stochastic scenarios.

Note: This session is a repeat of Session 53 PD.

Country Relevance: U.S.

Session Coordinator(s) Dean Andrew Kerr, FSA, ACIA, MAAA

Facilitator(s)

Credits: 1.50 CPD

Session Sponsor(s): Product Development Section

Competency: Strategic Insight and Integration

Moderator(s): Paul Fedchak, FSA, MAAA

Presenter(s): Paul Fedchak, FSA, MAAA; Chris Whitney, FSA, MAAA

Experience Level: Intermediate-Advanced

This workshop will allow participants can discuss issues they are having implementing PBR as part of the product development process.  Presenters will discuss coordination with other teams that was not needed as much previously, and how companies are ramping up the learning curve. They’ll also discuss what companies are doing with assumption setting, how reinsurance fits in, what companies are doing with getting models ready, and other implementation and practical issues.

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

  • Describe current practices for implementing PBR in the product development area;
  • Describe issues companies have been facing and how they have been solving them; and
  • Identify best practices for PBR implementation.

Country Relevance: U.S.

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

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Education & Research Section

Competency: Strategic Insight and Integration

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

Presenter(s): Gail E. Tverberg, FCAS, MAAA

Experience Level: All

The "peak oil" movement provided a very misleading view of what reaching limits of a finite world would look like. In physics terms, the world economy is a dissipative structure, which depends on an increasing supply of inexpensive-to-produce energy to operate. As the world economy reaches limits, among the type of impacts we should expect include:

  1. Falling inflation-adjusted economic growth rates;
  2. Falling inflation rates;
  3. Falling interest rates;
  4. Asset price bubbles that are prone to collapse; and
  5. Rapid changes in interest rates and currency relativities.

These changes have implications for actuarial models and for investments.

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

  • Interpret interest rate changes they are seeing in the real world;
  • Interpret political events they are seeing;
  • Explain why asset bubbles are likely to form;
  • Explain why radical leadership is likely to continue and even increase; and
  • Explain why derivatives are likely to become increasingly risky.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Gail E. Tverberg, FCAS, MAAA

Facilitator(s)

Credits: 1.50 CPD

Session Sponsor(s): Entrepreneurial & Innovation Section

Competency: Strategic Insight and Integration

Moderator(s): Jennifer L. Healy, FSA, MAAA

Presenter(s): Paul Bacon; Michael J. Roscoe, FSA; Anthony Alex Silva, FSA, MAAA

Experience Level: All

What does a Fitbit, an algorithm, and a strategic perspective have in common? Innovative thinking! 

In this session we will hear from three carriers who are challenging the traditional views of insurance practice—and setting new standards in the industry—by making insurance more approachable and mainstream, speeding the underwriting and issuance process, and changing the age-old requirements in underwriting.

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

  • Describe how carriers have used new technologies, bold thinking and new partnerships to think about the insurance customer value proposition in a new way; and
  • Explain how challenging the norm can lead to new products and process that can change the face of insurance as we know it.

Country Relevance: U.S. and Canada

Session Coordinator(s) Jennifer L. Healy, FSA, MAAA

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

Session Sponsor(s): Financial Reporting Section

Competency: Strategic Insight and Integration

Moderator(s): Kyle Baxter Stolarz, FSA, MAAA

Presenter(s): Steven F. Malerich, FSA, FLMI, MAAA; Gavin Thomas Stewart, FSA, MAAA; Kyle Baxter Stolarz, FSA, MAAA

Experience Level: Intermediate

In 2007, FASB began a project to explore the possibility of aligning U.S. GAAP and International accounting standards. After significant deliberation, in 2013 FASB decided to focus their efforts on making "targeted improvements" to U.S. GAAP for life insurance companies. The IASB continued their project to modernize insurance accounting, and in May of 2017 issued their final standard, IFRS 17, the first truly international IFRS Standard for insurance contracts. FASB targeted improvements to accounting for long-duration contracts and IFRS 17 will affect the emergence of earnings for insurance products on both a retrospective and prospective basis. Experts will review proposed changes and compare their impact on sample U.S. products.

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

  • Understand the main components of Targeted Improvements;
  • Understand how IFRS 17 is different from U.S. GAAP; and
  • Design products with an understanding of the financial statement impacts under the emerging regimes.

Country Relevance: Non-Nation Specific

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

Facilitator(s)

Presentation(s): View Presentation

Credits: 1.50 CPD

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

Competency: External Forces & Industry Knowledge

Moderator(s): Joshua David Dobiac, JD, MS, CAIA

Presenter(s): James Stuart McClure, FSA, MAAA; Zohair A. Motiwalla, FSA, MAAA

Experience Level: Intermediate

The refrain "All models are wrong but some are useful" is a common aphorism in the actuarial field. Certainly, models are at the core of what actuaries do. Irrespective of whether actuaries are involved in the pricing, valuation, risk management or hedging functions, our work means building, using, modifying or reviewing models in some fashion.

In recent years there has been strong insurance industry focus on model validation and governance frameworks, typically at the direction of senior management and regulators. When properly carried out, such a framework can help increase stakeholder confidence in the company financials. Such stakeholders include senior management and other end-users. Presenters at this session will discuss the approaches used in the industry to construct this framework, discussing best practices for concepts such as baselining, model inventory, model validation, effective challenge and user acceptance testing for the actuarial and non-actuarial functions.

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

  • Construct a model validation framework;
  • Implement best practices; and
  • Execute a successful validation.

Country Relevance: Non-Nation Specific

Session Coordinator(s) James Stuart McClure, FSA, MAAA

Facilitator(s)

Credits: 1.50 CPD

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

Competency: Technical Skills & Analytical Problem Solving

Moderator(s): Martin Snow, FSA, MAAA

Presenter(s): David A. Moore, FSA, MAAA; Martin Snow, FSA, MAAA

Experience Level: Intermediate-Advanced

Many companies have started to use predictive analytics to support automated underwriting and improved customer reach among others. Learn best practices of your peers and their successes and failures. What is the future of Artificial Intelligence (AI) for pricing and product development actuaries? What changes are being made in how AI is applied to underwriting? How are we measuring the results?

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

  • Describe the state of the art in using predictive analytics for automated underwriting;
  • Describe what effective AI based market outreach, next best offer, retention programs are and what can be done to improve them;
  • Describe how success is measured; 
  • Describe what is on the horizon for the use of AI for assumption setting and pricing; and
  • Describe how is AI being used to influence policyholder behavior in the VA space.

Country Relevance: Non-Nation Specific

Session Coordinator(s) Ricardo Trachtman, FSA, MAAA

Facilitator(s)

3:15 p.m. – 3:30 p.m.

Session Coordinator(s)

Facilitator(s)

3:30 p.m. – 4:30 p.m.

Join fellow attendees at this closing session to discuss several case studies related to professionalism topics. There will be tables set up with an expert at each table leading the discussions. 

Light refreshments will be available during this closing session.

Session Coordinator(s)

Facilitator(s)