Description: The time has arrived for ASU 2018-12, otherwise known as Long-Duration Targeted Improvements (LDTI). For health insurance products, the ASU will require considerable efforts to make the necessary changes to valuation systems, procedures, assumptions, and/or methodologies in order to be in compliance. This session is designed to cover LDTI implications specific to carriers of long-term care and supplemental health products, including changes to how attained age rated products will be approached, allocating and discounting the claim liability (IBNR), and how the treatment of Profits Followed by Losses (PFBL) will evolve under LDTI. By attending this session, you will be able to: • Understand LDTI’s key impacts on long-duration health insurance products. • Recognize the treatment of attained age rated products under LDTI. • Comprehend the requirements of allocating the claim liability to cohorts. • Grasp the requirements pertaining to the discounting of the claim liability. • Understand how PFBL will evolve under the new standard.

Description: 2021 ImpACT Conference - Session 14B: IFRS 17- Restructuring the Corporate Operating Model 10.29.21 Recording

Description: This session series is sponsored by Hannover Re Session 2 - COVID-19: Financial Impacts and Re-shaping Risk and Capital Management Practices COVID-19 has posed significant challenges to health insurers and providers to meet profit targets and maintain strong balance sheets and capitalization levels. As a result, companies are facing an ever-increasing need to better integrate their risk and capital management practices across the enterprise and evaluate a broader set of tools to manage and optimize their capital and liquidity needs. This second session of the COVID-19 series will help you examine the financial impact that COVID-19 has had on the health industry and review how companies are evolving their financial and capital management practices to achieve their strategic goals. It will also outline how structured reinsurance has emerged as an increasingly utilized form of managing capital. By attending this session, you will be able to explain how COVID-19 has impacted the financial performance and capitalization of the health insurance industry, and will gain a basic understanding of alternative ways of managing and optimizing capital, including the use of structired reinsurance.

Description: Capital market model return expectations took a nose-dive over the past year or two due to historically low interest rates and historically high pricing levels. It seemed reasonable to assume that macroeconomic fundamentals had changed so that these conditions may have become something like ""the new normal"". But now capital markets are shifting again, and rather dramatically, with runaway inflation and monetary policy changes aimed at controlling it. Capital market outlooks are shifting as well in response to this new starting point. What might be reasonable to assume now -- is this just a temporary blip or should we expect a totally different environment going forward? By attending the session, you will: Develop a better understanding of what trends and factors underlie projected interest rates and investment portfolio returns.

Description: This article highlights the fact that new requirements for disclosure of average liability duration and interest rates could lead to diversity in practice. It also recognizes that elements of the new disclosure requirements will enable financial statement users to perform their own crude estimates of these averages in ways that could help them to better understand the liabilities and to compare companies using consistent methods. Finally, the article describes how companies might also find value in such crude estimates.

Description: A review of model inputs, suggested methods to getting comfortable with the data that your model is using, and data validation lessons

Description: This article highlights some key implications for PAA and Related Disclosure Requirements under IFRS 17.

Description: In November 2020 the Life Actuarial (A) Task Force unanimously passed APF 2020-08 which adds a third permissible method in the Valuation Manual to determine company experience mortality rates. This article describes the three methods

Description: Take part in a practical and forward-looking discussion for long duration targeted improvements (LDTI) implications on financial planning and analysis (FP&A). This session will provide an update on emerging industry practices and considerations for reflecting LDTI in FP&A, including operational headwinds and new opportunities.

Description: S&P reissued a second Request for Comment (RFC) in May 2023 that proposed changes to their insurer capital adequacy methodology and assumptions, and suggested these proposed changes may become effective at the end of 2023. This paper is to highlight the notable changes between the current capital model criteria and the proposed model. We also discuss major changes from the first RFC and the second RFC, as well as several key items that still require enhanced guidance and clarification. Our analysis is based on information gathered from S&P's public comments, conversations with industry participants, and publications released by S&P Global as of July 2023 when this paper was written. Most U.S. life insurers are rated by S&P using their U.S. Life Statutory Capital model, while other insurers use the GAAP/IFRS Capital Model. Statutory financials will remain the starting point for U.S. life insurers under the proposed model, however there will be additional adjustments made to these numbers in an effort to create consistency and comparability with other accounting and solvency regimes.