Description: Risk management and capital budgeting are two critical components of the corporate decision process. They often need to be considered jointly at the corporate level because of their natural interaction through the dependent risk exposures and other synergetic relationships within an intricate corporate structure in a dynamic business environment. . This paper develops an integrated framework that aligns these two important corporate strategies across business divisions to optimize the streamlined enterprise strategic goal in a multi-period setting. The proposed integrated framework can serve as a practical guideline for corporate executives to optimally coordinate capital budgeting and risk management at the enterprise level.

Description: This article presents an FAQ on protected cell companies. From Reinsurance Section News, November 2007, Issue No. 61.

Description: State regulators' review of predominant LTC Risks after review of year-end AG51 reports.

Description: At this presentation from Session 79PD of the SOA 1999 San Francisco Annual Meeting, the speakers explain the financial risks inherent in the Asian financial crisis and other, more recent crises. They discuss how such risks can affect other countries and regions. They touch on such topics as sovereign risk and currency mismatching. The speakers also comment on impacts on multinational financial services operations and suggest ways for the industry to prevent or better manage these risks. From the Record of the Society of Actuaries, Vol. 25, No. 3.

Description: Despite a clear need and demographics which should be favorable to LTCI growth, the market remains stalled due to lack of understanding on the consumer side, and uncertainty on carriers' side. The 3 key risk areas for carriers are morbidity, terminations, and investment earnings. Financial market innovations which can address these include: repackaging risks as derivative securities, interest rate swaps and options, and inflation swaps.

Description: Many top-performing businesses aren’t just risk aware, but rather risk intelligent. Such a posture helps prepare companies for a major event and can demonstrate to a regulator or auditor that an appropriately strong control framework is in place. Better still, companies gain real strategic value from a “risk adjusted” understanding not only of their threats and vulnerabilities, but also the upside opportunities associated with various risks. It starts with having both qualitative and quantitative information to identify, assess and manage risks. Strategic risk management, at its core, is about creating value by increasing transparency and accountability, and quality of information. More than a mere compliance exercise, effective risk management enables more informed strategic decision making, increased accountability and transparency, a greater likelihood of organizational success, and – ultimately – competitive advantage, as borne out by many studies that correlate risk management and financial results.

Description: An insurance company selling LTCI today would do far better to address some important financial needs by taking the aspirin of improving modeling and pricing, and not the morphine of shutting down the business line entirely. The aspirin can consist of two strategies: First, integrate the projections of the asset portfolio and the claims liabilities when testing the sensitivity of assumptions or stochastically modeling the product. Second, establish a separate asset portfolio for LTCI products, and make sure it has a strong, well-defined, well-documented Investment Policy Statement. An Investment Policy Statement will enable pricing actuaries and investment departments to work together with the same goals and objectives.

Description: An overview of reinsurance training class provided to the Bermuda Monetary Authority (Authority) and Central Bank of Trinidad and Tobago (Central Bank) covering all aspects of reinsurance. Article also provides an overview of initiatives that the two regulators (Authority and Central Bank) are involved with.

Description: These are the charts from Session 79PD of the SOA 1999 San Francisco Annual Meeting where the speakers explain the financial risks inherent in the Asian financial crisis and other, more recent crises. They discuss how such risks can affect other countries and regions. They touch on such topics as sovereign risk and currency mismatching. The speakers also comment on impacts on multinational financial services operations and suggest ways for the industry to prevent or better manage these risks. From the Record of the Society of Actuaries, Vol. 25, No. 3.

Description: Presented at May 2002 Spring Meeting. This session provides an overview of the various methods used to manage the risks from guarantees of equity-based life and annuity products. Discussion includes the use of reinsurance, self-insurance and static/dynamic hedging.