Description: A look at the near future and far future of various elements of Actuarial Models as defined through ASOP 51. What is driving the complexity for inputs, calculations, and outputs. Howe will actuaries handle these challenge?

Description: ACA risk adjustment is intended to "bridge the gap" between allowed rates and actuarial rates. If risk adjustment methodology is not bridging that gap & becomes an additional input to pricing formulae, it is not serving its intended purpose.

Description: This is the second of a two-part article introducing and elaborating an “Adaptor” strategy for ERM. Such a strategy is intended to fulfil two purposes: first, switching among four styles of risk-coping strategies in order to track qualitative changes in a business’s risk environment; and, second, to support the business in navigating with resilience through all the seasons of a business-economic cycle, i.e., of boom, bust, moderate, uncertain. This latter requires careful study of the nature of resilience, the familiar idea of bounce back, and the less familiar idea of bounce forward. Part I of our article is underpinned therefore by a supplementary document (available from https://riskviews.wordpress.com/adaptor-exceptionalism/), which addresses the issue of structural change in a business or economy. It draws heavily on ideas taken from the discipline of control engineering, as well as some from ecology, social anthropology, and economics. The entire two-part article is thus an exercise in cross-disciplinary Systems Thinking.

Description: The paper demonstrates that the most popular rationalization for evolving glide paths is flawed and should be discarded. The paper also demonstrates that glide paths should generally evolve for investors that endeavor to optimize outcomes and reevaluate their portfolios regularly.

Description: The article describes the factors that should determine the asset allocation of an employer's QDIA, especially Target Date Funds, and suggests that in general QDIAs have insufficient equity in retirement asset allocations.

Description: In 2021, Deloitte and the SOA conducted a research study on emerging technologies in which the current use and future outlook of these technologies for the actuarial profession were evaluated.

Description: Family caregivers are a critical link in providing long-term services and supports (LTSS), but they have significant unmet needs. To better support family caregivers, Congress authorized the Recognize, Assist, Include, Support, & Engage (RAISE) Family Caregivers Act in 2018 and created the RAISE Family Caregiving Advisory Council. The Council identified recommendations to serve as the backbone of a national strategy to improve the physical, emotional and financial well-being of family caregivers. A new report, "Asking Directions: Mapping a Course to Support Family Caregivers," identifies specific actions across a variety of players for meeting the Council’s recommendations. It summarizes insights from a year’s worth of strategy sessions and interviews with representatives of over 100 organizations. The report brings together thoughts on best practices and the most critical action steps from national and state organizations, county health providers, the direct care workforce, large and small employers, aging and disability organizations, faith-based groups, respite care providers and more. This article summarizes the research methods and key findings of the report and the work conducted by the Leading Age LTSS Center @UMass Boston and Community Catalyst’s Center for Consumer Engagement in Health Innovation.

Description: Discusses insurance company considerations and approaches when dealing with the complexities of deferred lives within pension plans.

Description: View the Spring 2022 FSA Exam Book List.

Description: This is a conversation with two critical staff members of the Society of Actuaries (SOA) about their experience there. Jane Lesch is a non-actuary who has been working at the SOA for over 20 years, and is an engagement specialist. Mike Boot is an actuary who retired at the end of February after 15 years at the SOA, most recently as managing director. We spoke to both Jane and Mike to get their take on what leadership is about, and how working at the SOA impacted them.

Description: In the United States, there has been much industry discussion of the challenges associated with a sustained low interest rate environment, which impacts both the asset and liability sides of the balance sheet in unfavorable ways. The intent of this article is not to focus on these strategic issues. Rather, we attempt to shine a spotlight on some of the modeling challenges that practicing actuaries may experience when incorporating negative interest rates into their models.

Description: A discussion on technology improvements in establishing compliance with sections 7702 and 7702A. The Internal Revenue Code defines life insurance using actuarial tests that limit the investment in a life insurance contract as compared to the death benefit. Inadvertant failures of the actuarial tests can be uncovered by testing in order to enable remediation.

Description: This article summarizes key points from the recently published research paper “Deep Learning for Liability-Driven Investment,” which applies reinforcement learning and deep learning techniques to liability-driven investment (LDI).

Description: The latest in a series of articles connecting the principles of Zen Buddhism to the working world of actuaries. This issue focuses on techniques for cultivating a gratitude mindset under all types of conditions - even stressful ones, in order to maintain equilibrium and harmony for a more productive workday.

Description: it discusses the framework and modeling of the market consistent valuation of fixed indexed annuity, against the backdrop of the convergence of accounting standards and internal risk management.

Description: In this article, a numerical comparison of two commonly used FIA valuation methodologies is conducted to help insurers decide on the best methodology to use under GAAP LDTI and VM-22. We compared two modeling approaches to project the future index credits with the annual point-to-point crediting formula: Tthe stochastic equity crediting model and the deterministic option budget crediting model. The analysis is then extended to different levels of option budgets and the monthly average crediting formula. The advantages and disadvantages of the two equity return projecting approaches are also highlighted and will be discussed later in the report.

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.

Description: Interview (Q&A) with Charlie Shamieh, Chairman of Gen Re, against the backdrop of the COVID-19 Pandemic and its impact on Re/Insurance

Description: Actuarial Process Optimization is a framework for using technology to support the actuary of the future. In this article, we discuss the capabilities of new technologies and explore examples where they can be used to aid with providing strategic business direction, optimizing skillsets and use of technology, and maintaining governance, control, and risk frameworks.

Description: In this article, we summarize inflationary factors that may result in a sharp increase in interest rates and implications for life insurer convexity risk exposure, most notably to dynamic policyholder lapsation. We further provide insights into potential ALM strategies to mitigate this convexity risk. Due to the prolonged low-interest rate environment and low minimum interest rate guarantees offered to policyholders, liability convexity is higher than prior historical periods, which results in life insurers’ ALM positions being extremely vulnerable to short-term interest rate spikes. Convexity mismatches cause issues for life insurers under both rising and declining interest rate scenarios. This means that life insurers are not compensated for taking convexity risk and, therefore, convexity matching should always be considered in the asset optimization process. There are mixed signals from policymakers and financial markets regarding potential inflationary and sharply rising interest rate scenarios. The key takeaway is that life insurers are not compensated for taking convexity risk and it is the right time for insurers to review convexity exposure. There are different approaches available to mitigate convexity exposure through rebalancing of asset positions and hedges within each life insurer’s risk limits.

Description: In this article, we summarize inflationary factors that may result in a sharp increase in interest rates and implications for life insurer convexity risk exposure, most notably to dynamic policyholder lapsation. We further provide insights into potential ALM strategies to mitigate this convexity risk. Due to the prolonged low-interest rate environment and low minimum interest rate guarantees offered to policyholders, liability convexity is higher than prior historical periods, which results in life insurers’ ALM positions being extremely vulnerable to short-term interest rate spikes. Convexity mismatches cause issues for life insurers under both rising and declining interest rate scenarios. This means that life insurers are not compensated for taking convexity risk and, therefore, convexity matching should always be considered in the asset optimization process. There are mixed signals from policymakers and financial markets regarding potential inflationary and sharply rising interest rate scenarios. The key takeaway is that life insurers are not compensated for taking convexity risk and it is the right time for insurers to review convexity exposure. There are different approaches available to mitigate convexity exposure through rebalancing of asset positions and hedges within each life insurer’s risk limits.

Description: A compilation of reader responses is presented to a real life situation posed involving a management, leadership, or other business decision. This issue’s case study involved a career decision by a near FSA.

Description: Describing my experience of serving on a section council. Reflecting on some of my successes and my frustrations.

Description: This session will present results of the most recent SOA/LIMRA studies of variable and fixed-indexed annuity policyholder behavior including withdrawal behavior, guaranteed living benefit elections and surrender activity. Conducted annually since 2006, a discussion on the results of these studies show how they have changed over time, as well as areas where the analysis will need to change or expand. After that, the presenters will focus on dynamic lapse for hot money businesses, which is an important topic for fixed deferred annuity. Key takeaways from this area will include an understanding how to differentiate between hot money and warm money, the different formulas used in the industry, and how to adjust an asset portfolio to protect against the risks associated with hot money businesses.

Description: View information on the 2021 Board Member Candidate Mercy Yan.

Description: We discuss a high-level overview with practical steps on how to be a great manager. We describe 14 real-life traits of a truly impactful manager that can be used to successfully guide a team that includes staff who are at any level of their career. The results should help create a dynamic, empowered and engaged team

Description: A real life situation is posed involving a management, leadership, or other business decision, and readers are invited to submit their responses to "What Would You Do?" This issue’s case study involved deciding whether or not to take an actuarial job that didn't seem that interesting, in order to work for a dynamic boss.

Description: This article is the final installment of our three-part series on economic scenario generators (“ESGs”). Part I and II were published in the November 2019 and August 2020 issues of The Modeling Platform. Part III contextualizes the framework for selecting, building, and validating ESGs and focuses on the Academy Interest Rate Generator (“AIRG”), the most commonly used real-world ESG for US actuaries

Description: This article looks at how the underwriting process has transformed from a paper process to become fully online. Not only has the process been digitized, there has been various innovations incorporating technology thus enabling large volume process automation, better customer experience as well as higher closing ratio. Other than improvement on speed and efficiency, various smart solutions are being explored to refine risk management through data mining and analysis of underwriting data.

Description: This is the final article in a five-part series about accounting for reinsurance under GAAP Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). It looks at some concerns that arise when new reinsurance is purchased to cover previously-issued contracts. The article describes what formal guidance is available. Where that guidance leaves off, the article presents practical solutions to achieving performance objectives.

Description: This article offers ways to make use of Excel more efficient, by applying software development and design principles

Description: The Society of Actuaries’ Committee on Finance Research is pleased to make available a research report that develops a framework for applying deep learning and reinforcement learning techniques to optimal dynamic strategic asset allocation for Liability Driven Investment (LDI).

Description: The article addresses treatment of products with indirect participating features (e.g. declared credited rates) under IFRS 17. Some of the questions that are answered include classification, stochastic modeling requirements, application of the illiquidity premium, methods to systematically allocate between P&L and OCI, and use of locked in discount rates for CSM purposes.

Description: Feature article discussing model monitoring

Description: This article discusses challenges in innovation, governance, and balancing the tension that naturally arises between them. Company culture is often a driver of success or failure in innovation. This article outlines a new dynamic to address this challenge.

Description: Feature article that discusses how insurance and banking business models have continued to grow in complexity over the past 50 years—from simple and local risk exposures to the current environment of complex and global exposures

Description: Feature article discussing futurism and a study that contains in-depth descriptions of the Delphi and TIA methods; listings of the rationales and thought processes, the plausible future developments that could influence the values of these four economic variables and the resulting “fan of possibilities” for the values of these variables

Description: This paper highlights the impact on shareholder equity and AOCI due to the introduction of LDTI during a period of falling interest rates. The paper is intended to provide an example of an analysis that will help actuaries explain the interaction of LDTI and falling interest rates.

Description: This article introduces the JRMS library, how one can access it and what books are added this year.

Description: This article introduces the JRMS library, how one can access it and what books are added this year.

Description: The article discusses the impact of changes made to Internal Revenue Code Section 7702 by the ConsolidatedAppropriations Act, 2021. The Consolidated Appropriations Act made changes to the interest rates used calculatethe Section 7702 premium and cash value funding limitations for life insurance contracts

Description: This article describes Medicare Supplement and short-term care products in more detail, and we compare their risk profiles. We explore the concept that these two products—when offered together—may provide a complementary hedge of certain policyholder behavior risks.

Description: Risk management reports that are relevant to general insurance matters are available for download below.

Description: This article analyzes, understands, and discusses the impact of the upcoming Principle-Based Reserving (PBR) on non-variable deferred annuities.

Description: Interview with Karen Lockridge, FSA, FCIA and Francisca Quinn regarding fiduciary concerns with and future outlook for Environmental, Social and Governance (ESG) investing.

Description: This article focusses on the results of a June 2020 survey by the Leadership and Development Section of the SOA on working remotely as an actuary. The article presents the questions and responses of the survey, and commentary on how to successfully navigate the remote work environment as an actuary - from the perspective of both a current organizational leader, and as a future organizational leader.

Description: The personal auto insurance industry is constantly changing. There are small and steady changes over time (e.g., inflation affecting the cost of repairs or general progress in the safety of vehicles) and sharp spikes (e.g., disasters and legislation). That change has never been more apparent with the Covid-19 pandemic, civil unrest, and driverless cars all presently having a significant impact on personal auto insurance.

Description: The COVID-19 pandemic has not simply changed the way we live. It has caused most of us—whether we want to or not—to reassess the way we think and feel about our world. Most in the general public have been looking to political and medical leaders to better understand the implications to health and wealth. Likewise, we as actuaries look to business leaders and key volunteers for their insights into the impact on our profession. We recently conducted a series of interviews with such leaders in the Canadian actuarial profession. This article addresses their insights into the evolving set of skills we need in this rapidly changing world.

Description: 2020 candidate questionnaire for Ronald Klein

Description: 2020 candidate questionnaire for David Sandberg

Description: This paper introduces actuaries and others to dynamic stochastic general equilibrium (DSGE) models, a type of macroeconomic model. Authored by Kailan Shang, the paper illustrates how DSGE models can be used in economic scenario generation to reflect the cause and effect relationships that occur in the economic system.

Description: The Society of Actuaries announced a partnership with Silicon Valley-based accelerator Plug and Play. The two organizations will join forces to exchange knowledge and ideas that will benefit both the insurance industry and consumers.

Description: The Society of Actuaries and Silicon Valley start-up accelerator Plug and Play are creating a knowledge exchange with our members and InsurTech start-ups to share expertise and insights.

Description: View the Lifetime Volunteer Award Recipients.

Description: Read about the 2019 Call for Essays: Actuarial Practice Innovation.

Description: Career changes typically follow a major milestone—a promotion, a job offer, a new degree, maybe a cross-country move. For Patrick Getzen, exposure to some new perspectives ignited a shift.

Description: View the 2019 President-Elect Candidate page for Jim Toole for the 2019 SOA Elections.

Description: View the Candidate Questionnaire for William B. Fornia for the 2019 SOA Elections.

Description: Read 2019 Elected Board Member candidate Xu (Vincent) Xuan's Questionnaire.

Description: Library of articles related to Actuarial Innovation & Technology Strategic Research

Description: View the exam book list.

Description: View the exam book list.

Description: View the exam book list.

Description: View the exam book list.

Description: View the exam book list.

Description: List of NAAJ prize winners.

Description: Candidate questionnaire for Roger Loomis

Description: Candidate questionnaire for Julie Curtis

Description: Review the table of contents for 2018.1 Actuarial Research Clearing House.

Description: Julie A. Curtis is an endorsed candidate for elected Board Member for SOA's 2017 elections. Read her candidate questionnaire.

Description: David K. Sandberg is an endorsed candidate for elected Board Member for SOA's 2017 elections. Read his candidate questionnaire.

Description: The SOA Outstanding Session Award program recognizes the moderators and speakers at the best sessions at SOA flagship meetings. View the award recipients for the Investment Symposium.