Description: Regulatory change and increased focus on internal risk management are driving a renewed interest in model efficiency. In this session, we will review several new and existing tools, that show significant promise for advanced modeling of equity linked products. These include: • Clustering • Use of unique--and potentially a different number of--scenarios for each policy • Semi Monte Carlo (SMC) – this is a proprietary technique that is similar to a combination of Monte Carlo and numeric integration • Using a neural network approach to optimize some of the more complex and manual aspects of clustering and improve the fit of the clustered model • Combining SMC with the use of unique scenarios per policy

Description: This session will provide an overview of the evolution of equity-based guarantees (e.g. VA, FIA, etc.) over the last few years and discuss the current lay of the land as it relates to the regulatory, issues, capital markets (e.g. Department of Labor, Dodd-Frank) environment in which these products are offered.

Description: Managed strategies as underlying investments in VA/FIA products have seen spectacular growth since the financial crisis. The speakers of these sessions will share their views on the development of this market and what is expected to unfold over the next 12 months in regard to the next generation of products and fund-based strategies.

Description: 1998 Valuation Actuary Symposium. The speakers provided an overview of the GAAP accounting prior to SFAS 133, an example of that guidance and how the accounting works, the new GAAP guidance, the new SFAS 133, and deferred acquisition cost considerations for equity-indexed annuities.

Description: In session 22 PD of the Montreal Spring Meeting panelists discuss a range of issues relating to equity-indexed annuities EIAs. From the Record of the Society of Actuaries, Vol. 23. Vol 2.

Description: In session 70PD of the Montreal Spring Meeting panelists discuss tax, statutory, and GAAP accounting issues relating to equity-indexed annuities EIAs. From the Record of the Society of Actuaries, Vol. 23, No. 2.

Description: In session 140 PD of the Washington Annual Meeting panelists discuss issues related to equity-indexed annuity EIA products. From the Record of the Society of Actuaries, Vol. 23, No. 3.

Description: The speaker of this session will provide a bottom up analysis and categorization of the $200 billion of volatility control funds related investments while recapping volatility control fund trading around volatility spikes (including Aug. 2015 and June 2016). The assessment of potential market impact of the volatility control funds’ rebalancing activity will also be discussed.

Description: There is no “industry standard” approach to managing the vega (volatility) risk inherent in Variable Annuity Guarantees, Fixed Indexed Annuities and other equity-linked obligations. In this session, we will introduce and analyze a range of reinsurance solutions, including full vega risk retention, full vega risk transfer and more sophisticated or custom structures that split the vega risk between the insurer and the reinsurer in various ways. We will also explore other approaches in bespoke risk coverage and show the impact of different assumptions on a generic “VA Guarantee Cost Estimate” that has been developed by Munich Re.

Description: In this session, a company will share its experience on managing risks underlying the equity-linked insurance guarantees and what lessons were learned over these years as it adapted its strategies to suit the current market environment.