Description: Risk management techniques do not include system science. System science requires that the uncertainty of the world is incorporated into the results. The articles explains the difference between risk and uncertainty. Learn how risk practices create an overoptimistic view of future outcomes.

Description: Andy Rallis delivers his speech at the presidential luncheon of the SOA 2019 SOA Annual Meeting & Exhibit in Toronto.

Description: Frequently Asked Questions about the SOA's University-Earned Credit (UEC) program.

Description: In preparing claims reserves in the annual statement, health insurers and their opining actuaries will generally include a provision for adverse deviation (PAD) in their reserved amount in order to satisfy language in both in the National Association of Insurance Commissioners (NAIC) Health Annual Statement Instructions and in Actuarial Standards of Practice. This article explores the total level of PAD (both implicit and explicit margin combined) included in the reported claims reserves by examining NAIC filing data from 2016 through 2022.

Description: The article is an interview with Barbara Hogg who summarizes the results of a survey of Americans about their awareness of financial risks faced in retirement and how they are managing those risks. The survey was commissioned by the SOA and is the 11th iteration of such a survey.

Description: To understand the relationship between lifestyle behaviors and mortality, RGA investigated a national, health-related, mortality-linked data set provided by the U.S. Centers for Disease Control and Prevention (CDC). RGA Strategic Research Actuary Julianne Callaway discusses the company's findings.

Description: Re/insurance rates have been increasing since 2018, although pricing momentum has decelerated recently. Insurers and reinsurers are working to enhance profitability and improve the value proposition for clients in an environment of uncertainty about natural catastrophes, COVID-19-related losses, and social inflation, among other factors. This article describes drivers of the current underwriting cycle, compares it with past cycles, and provides considerations for the future.

Description: This paper applies the research in Prospect Theory of Kahneman and Tversky to explain why sales of annuities lag sales of life insurance products. The author theorizes that life insurance is easier to sell because customers perceive themselves to be in the domain of losses, while potential annuity customers perceive themselves to be in the domain of gains. Kahneman and Tversky showed us that people are mostly risk averse in the domain of gains and risk seeking in the domain of losses. Purchase of an annuity or life product is a risky investment. Customers will find it easier to take the risk in the life insurance domain of losses than the annuity domain of gains. The author then proposes a hybrid life annuity product that might address both mortality and longevity risk in one product that would allow both products to be more competitive than stand-alone products.

Description: For over a decade, life insurers have been challenged by a low interest rate environment, making it difficult to find investments with adequate yield, manage corporate spreads, and offer competitive products to consumers. While interest rates are still low compared to the early 2000’s, volatility in rates over the past year, during which the 10-year U.S. Treasury rate has increased by nearly 100 basis points, could indicate a longer-term trend of rising rates. What would a rising rate environment imply for life insurance writers? Insurers able to react to interest rate changes with agility can remain relevant in an evolving economy, protecting themselves and their policyholders. This article addresses risks and considerations faced by insurers with respect to in-force retention, pricing and product mix, and reinsurance and mergers & acquisitions.