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

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

Session Description:
At this session, experts will provide an overview of current statutory valuation issues pertaining to life and annuity products. The focus is on activities of the American Academy of Actuaries relative to principle-based approaches, but other matters will be covered, including the status of the NAIC valuation manual, life risk-based capital, developments at the NAIC affecting life insurance companies, and practice issues for appointed actuaries

Moderator: Angela McShane, FSA, CERA, MAAA

Presenter(s): Benjamin Slutsker, FSA, MAAA; Rachel C. Hemphill, FSA, MAAA, FCAS

Session Description:
The valuation manual is a living document that continues to evolve. As more companies adopt Principle-Based Reserving (PBR) and file PBR Actuarial Reports, regulators have observed gaps and inconsistencies across the industry. As a result, PBR reporting requirements (VM-31) have expanded significantly in 2020 and still continue to evolve. This session will provide attendees with everything they need to fill out their PBR reports for both Life business and Variable Annuity business. We will dig into the new changes effective for 2020 reporting and approved changes for 2021, and compare and contrast the Life and VA requirements to help companies identify areas that can be leveraged between the two. In addition, we will share insights from regulators, consultants, and company actuaries on what to include or exclude in your report.

Moderator(s): Kelley M. Weiss, FSA

Presenter(s): Rodrigo Careaga, ASA, MAAA; Kyle Stolarz, FSA, MAAA; Kelley M. Weiss, FSA

Session Description:
The IASB's new standard, IFRS 17, is a significant shift in accounting for insurance companies around the world. The presenters will summarize final changes to the IFRS 17 standard and their impact on implementation as parallel runs and the transition period draws near.

Many companies are heads down on their implementation journey and haven't begun to think about what happens once IFRS 17 goes live, what the business implications are, and new Key Performance Indicators for steering the business. The presenters will shine light on these unknowns and will also discuss how IFRS 17 will change the role of the actuary and how actuaries can begin preparing for those changes now.

Moderator(s): TBD

Presenter(s): Bill Cember, FSA, MAAA; Reanna M. Nicholsen, FSA, MAAA; Kathryn M. van Ryn, FSA, MAAA

Session Description:
The optional phase-in period for life principle-based reserves (PBR) has come to a close, and companies have put in the work to bring their PBR implementations across the finish line. With the mandatory PBR implementation deadline behind them, companies can turn their attention from compliance to model and process improvements. The presenters will outline lessons learned from PBR implementations and their applications to broader use cases, as well as resources that are available for PBR modelers.

Discussion topics will include items such as:

• Model simplifications and validation
• Model run-time techniques
• Model scalability (e.g. adding new products / future assumption updates)
• Sensitivity testing
• Model projections
• Available PBR & other modeling resources (e.g. PBR practice note, ASOP 56)

Moderator(s): Dylan Strother, FSA, MAAA

Presenter(s): Kevin Piotrowski, FSA, CERA, MAAA; Benjamin Slutsker, FSA, MAAA

Session Description:
As the portion of inforce business valued under PBR grows, it becomes increasingly important to not only calculate reserves for point-in-time valuation but to also project reserves. This is especially critical for actuarial functions such as pricing, business strategy/forecasting, and asset adequacy testing. In this session, we will review PBR projection techniques based on work completed by the American Academy of Actuaries when developing the PBA Projection Practice Note. In addition, this session will examine specific challenges that can arise when actuaries use models to project reserves at future dates. Topics covered include mortality improvement, credibility, scenario generation, starting asset projections, and various other technical issues related to nested modeling requiring both inner and outer loop projections.

Moderator(s): Ralph M. Ovsec, FSA, FCIA, MAAA

Presenter(s): Dan Kim, FSA, CERA, MAAA; Thorsten Wagner

Session Description:
Key performance indicators (KPIs) are essential in order to monitor and communicate a life insurance companies’ financial results, and effectively manage the business. This presentation will illustrate how the currently used KPIs may develop and evolve with the adoption and implementation of IFRS 17. Will the IFRS 17 insurance revenue be an appropriate measure for growth? Will the profitability and new business value measures be different? The panelists will discuss the implications of IFRS 17 on the existing KPIs and the possible changes that may lay ahead.

Moderator(s): Ramandeep Nagi, FSA, FCIA, MAAA

Presenter(s): Ramandeep Nagi, FSA, FCIA, MAAA; Benjamin C. Farnsworth, FSA, CERA, MAAA; Eric J. Forfa, FSA, MAAA; John Johansen

Session Description:
Computer processing power has improved exponentially over the last few decades. So why haven’t these improvements translated to shorter monthly and quarterly close cycles? Convoluted processes resulting from legacy and manual processes along with complex data mapping requires days, if not weeks, of preparation to report financial results. Much of this time is spent on activities like fixing errors and tweaking processes rather than on analyzing results and transforming outputs into meaningful, forward-looking insights. Imagine a world of on-demand results - what would you do with all that information and available resource time? This session will introduce the audience to data and process issues facing insurers and provide insights to overcoming them through process optimization and automation. The presenters will also walk through solutions available in the market and real-life case studies related to automation and process improvement.

Moderator(s): Serena K. Chao, FSA, MAAA

Presenter(s): Mary J. Bahna-Nolan, FSA, CERA, MAAA: Timothy C. Cardinal, FSA, CERA, MAAA; Nina Han, FSA, CERA, MAAA; Rachel C. Hemphill, FSA, MAAA, FCAS

Session Description:
The margin on the mortality assumption is largely prescribed and represents the largest source of margin in principles-based reserves for most writers. This is causing both reinsurers and direct writers to sharpen their pencils when setting their anticipated experience assumption, as well as discretionary elements of associated margin.

In this session, the presenters will share best practices and considerations on setting mortality in a PBR context, including but not limited to:

• Emerging topics and trends in mortality
• Simplified Issue / Fully Accelerated Underwriting mortality (how to set company and industry mortality when guidance is not available)
• Mortality segments (how are they defined and developed)
• Relative Risk tool use (extent of use and output adjustments)
• Historical mortality improvement on 2015 VBT (standardization of approach)
• Documentation/disclosure (what regulators are looking for)

Moderator(s): Yang Jing, FSA, MAAA

Presenters: Joshua Dobiac, Yang Jing, FSA, MAAA

Session Description:
This session will have two sections:

• General consideration of IFRS17 implementation for VA writers and reinsurers
• A case study of IFRS17 implementation for a reinsurer

The first section will go over VFA and GM approaches that are available for VA writers. Both approaches have their own challenges. We will highlight some of the challenges and how to approach/overcome them. Additionally, we will discuss how hedging/ALM can help smooth the transition.

The second section will go over the details of implementation process of a VA reinsurer. The case study will explore valuation challenges unique to reinsurers assuming business that would otherwise be valued under the VFA. It will also go over some of the modeling difficulties, project management, and database requirement.

Moderator(s): Dylan Strother, FSA, MAAA

Presenters:Paul Chen, FSA, MAAA; Patrick Davidson, ASA, CERA

Session Description:
With many complex regulatory changes on the horizon as well as pressures to ensure model accuracy from auditors, regulatory requirements and new actuarial standards of practice, the importance of robust model validation is coming to the forefront of actuaries’ minds. What was previously a day-two task for many companies is becoming just as important as model development!

In this session, you will hear from those that have been deeply involved in building model validation frameworks and tools in responses to regulatory changes GAAP Long Duration Targeted Improvements (“LDTI”) and Principles Based Reserves (“PBR”).

Moderator(s): Chris Whitney, FSA, MAAA

Presenter(s): Jason E. Kehrberg, FSA, MAAA; Scott O’Neal, FSA, MAAA; Chris Whitney, FSA, MAAA

Session Description:
Regulators observed a wide range of practice from early adopters of PBR in regard to the treatment of non-guaranteed reinsurance and adopted a formulaic solution on an interim basis for the 2020 Valuation Manual. A field test, supplemented with additional analysis performed using a model-office approach with representative models, is being performed over the first half of 2020 to inform regulators as they select a longer-term solution.

This session will provide an update on this important issue as well as perspectives on how the resolution of this issue was approached and lessons learned for the future from those intimately involved in this work.

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

Presenter(s): Megan Guy

Session Description:
Negotiation - it's not just for buying a car! Actuaries negotiate every day at work, whether it's getting buy-in to change a critical assumption or a more reasonable timeline to complete a project. This workshop will be led by an instructor specializing in executive education and will offer techniques you can use to be more effective in your day-to-day life.

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

Presenter(s): Connie Dewar, FSA, FCIA; Marianne Purushotham, FSA, MAAA; Larry N. Stern, FSA, MAAA

Session Description:
Future mortality improvement is an important assumption in the valuation of life insurance and annuities. In this session, presenters will discuss the work of the Mortality Improvement subgroup of the American Academy of Actuaries’ Life Experience Committee and the Society of Actuaries’ Preferred Mortality Oversight Group Valuation Basic Table Team in developing mortality improvement scales for AG-38 and VM-20. In addition, two recent SOA efforts on mortality improvement will be examined. Research on developing a broader framework for modeling mortality improvement assumptions is being developed to enable U.S. actuaries additional ways to follow a consistent approach across a variety of actuarial practice applications. Results from a study on U.S. population mortality by socioeconomic category and how it fits into the broader consistent framework will be presented. Additionally, results of a survey on mortality improvement practices of life insurance companies and reinsurers in Canada and the U.S. will be shared.

Moderator(s): Nicholas E. Carbo, FSA, MAAA

Presenter(s): Nicholas E. Carbo, FSA, MAAA; Kaihua Yu, FSA, MAAA

Session Description:
There has been significant discussion of PBR for Life Insurance, but there have also been significant changes in PBR for annuities recently; including VM-21, VM-22, and future VM-23. This session will discuss recent changes in PBR for annuities as well as what the future may hold.

Moderator(s): Michael Hayes, FSA, MAAA

Presenters: Robert A. Hanes, FSA, MAAA; Michael Hayes, FSA, MAAA

Session Description:
FASB’s Targeted Improvements to the Accounting for Long-Duration Contracts (“LDTI”) will have vast impacts on insurance company data requirements and processing, actuarial modeling, and financial reporting. While many insurers are busy working to assess the implications of and implement the new accounting standard, its impact on internal controls and external audits can be overlooked. The lack of attention to the control environment and framework throughout the LDTI implementation, coupled with increased scrutiny from external auditors and regulatory authorities (e.g., PCAOB) once LDTI becomes effective, could possibly result in significant deficiencies and material weaknesses in controls. As insurers are facing continuous regulatory changes beyond just LDTI, they must be proactive in ensuring that their control environment and framework is effective, mature, and adaptable to changes.

Moderator(s): Chad Record, ALMI

Presenters: Elizabeth Dietrich, FSA, CERA, MAAA: Kelly Hennigan, FSA, CFA; Chad Record, ALMI; Matthew J. Wininger, FSA, MAAA

Session Description:
The insurance industry is in a constant state of transformation. As organizations adapt to the effects of COVID-19, undergo modernization efforts and implement new technologies, soft or “human” skills are becoming key differentiators for success. Skills such as communication, empathy, storytelling, leadership, problem-solving and more are separating the good from the great actuaries. Those who possess these skillsets can better translate data and most efficiently leverage systems and teams. At the same time, by taking a human approach to modernization efforts, leaders will be able to best engage and motivate their workforces, while building teams that will excel in the future of work.

Moderator(s): Jason E. Kehrberg, FSA, MAAA

Presenter(s): John Miller, FSA, MAAA; Chris Conrad, FSA, MAAA; Benjamin M. Slutsker, FSA, MAAA

Session Description:
The American Academy of Actuaries will present on current initiatives that impact the U.S. statutory reserving methodology for non-variable annuity contracts. In particular, the development of a principle-based reserving framework on non-variable annuity contracts will be discussed, including framework elements, assumptions, and methodology. The session will provide an update on the status of regulatory discussions and the timeline for future changes to reserves. By the end of the session, attendees will understand what changes are being made to non-variable annuity reserves, details underlying existing proposals, and the anticipated timing of such emerging changes. This session is intended to the meet the needs of actuaries focused on annuity reserve calculations, financial reporting, and valuation.

Moderator(s): Gavin T. Stewart, FSA, MAAA

Presenters: Steven Abel; Michael C. Hayes, FSA, MAAA

Session Description:
LDTI will have a substantial impact on insurer’s data and information needs, particularly those required to comply with the enhanced disclosure requirements. This session will focus on those enhanced disclosure requirements, which are significantly expanded over current US GAAP, and will consider technical requirements, system, and modeling implications. It will provide industry insight as to how insurers are approaching the enhanced requirements as well as obtaining better insight into their business and key drivers of earnings.

Moderator(s): Marc Altschull, FSA, MAAA

Presenters: Daniel Finn, FCAS; Patrick Ledlee, FSA; Frederick J. Hill, FSA

Session Description:
Asset cash flow modeling and asset assumptions are growing in importance with PBR especially considering the low interest rate environment. The Academy’s Life Practice Council and Life Valuation Committee have formed a Low Interest Rate Asset Adequacy Testing Task Force which has conducted an industry survey to raise awareness and summarize the actuarial best practices for financial reporting actuaries practicing in today’s very low interest rate environment. As the scrutiny on the asset side ratchets up, actuaries must consider how best to develop the asset assumptions as well as model the reinvestment and disinvestment strategies. Coherent assumptions and modeling practices across modeling exercises are expected while respecting the purpose of each calculation.

Moderator: John B. Brady, FSA, MAAA

Presenter(s): Guillaume Briere-Giroux, FSA, MAAA; John B. Brady, FSA, MAAA; Zohair A. Motiwalla, FSA, MAAA

Session Description:
Hear from companies & consultants that early adopted VM-21 for year-end 2019. Learn from their experiences in preparing for the significant additional work required for implementation - updating models, assumptions, documentation, etc. Hear about the NAIC review and feedback (if available).

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

Presenter(s): Maria R. Itteilag; Michael Lundquist, FSA, MAAA

Session Description:
This session will bring together practitioners from insurance companies and consulting firms to explore lessons learned so far related to data, models and systems, and other current issues. This session will also provide a forum for discussion for companies to share challenges and discuss solutions for implementing LDTI.

Moderator(s): David Alison, FSA

Presenter(s): David Alison, FSA; Zeeshan Rehmani, FSA, MAAA

Session Description:
Effective strategic decision-making helps insurance firms succeed by, among other things, enhancing profits and return on investment. Capital optimization is a crucial component for business leaders to consider when it comes to financial planning, new business strategy, and evaluating corporate structures. Actuaries have a vital role in evaluating and communicating key risks and impacts on the capital position for such strategic decisions. In this session we will be exploring in detail the range of practices when it comes to:

• Assessing the immediate impact to capital from corporate strategy and new product design
• Creating a forward-looking assessment of capital across the business planning horizon, including considerations with regards to the change in risk profile due to strategic action
• Keeping pace with internal demand to ensure that capital is part of the decision making process
• Providing analysis of sufficient quality to allow management understanding of key drivers of change and how their decisions influence results

Moderator(s): Parul Bhatia, FIA, FIAI, MAAA

Presenter(s): Zohair Motiwalla, FSA, MAAA; Yuan Tao, FSA, MAAA

Session Description:
VA reserve and capital reforms are effective 1/1/20 and the first year of reporting under the new framework requires several key milestones for annuity valuation actuaries to achieve. Discuss key implementation issues, including the new standard projection, optionality around hedge treatment and taxation, discuss disclosure requirements as well as the PBR report requirements. Overall focus on decisions to be taken by a valuation actuary with respect to reporting under the new framework.

Moderator(s): Alexandre Lemieux, FSA, MAAA

Presenter(s):Brian J. Foley, FSA, MAAA; Alexandre Lemieux, FSA, MAAA; Christopher Murphy, FIAA

Session Description:
Under the new reporting regimes actuaries have the opportunity to become leaders for all aspects of cash flows and related insights, rather than just the reserve change line on the income statement, to help educate the organization and informed business decisions. This session will provide practical examples and scenarios where actuaries take on leadership roles to drive reporting compliance and organizational changes; as well as provide an opportunity to discuss what didn’t work as well when it came to deploying new technologies to the valuation and pricing teams.

Moderator(s): Emily Cassidy, FSA, MAAA

Presenter(s): William Abram, ASA, MAAA; Mandy Lee, FSA, MAAA; Sebastian Polczynski, ASA, MAAA; Darren Zhang, FSA, MAAA

Session Description:
Model Risk Management continues to be an evolving area for insurers to be considering. This has grown from both internal and external forces and may require a different format to previous model risk frameworks held by insurers. Furthermore, there are a number of trends emerging that we believe will drive an increased focus on insurer’s model risk management frameworks such as technology automation, ever increasing data sources, and the use of predictive models.

Risk management and the development of models is an area where insurance companies have performed well in the past. It is expected that frameworks currently exist within companies; the governance, documentation, validation and control of model risk are likely to be well established practices. The challenge that insurers must consider is how well these have been adopted throughout the company for all models used to make business decisions and if the same level of rigor has consistently been applied. Regulation in a high-velocity actuarial environment will to be a challenge that actuaries must spearhead and must be proactive in guiding rulemaking to ensure continued innovation while putting data security and risk management first.