Description: Article provides a brief summary of the highlights from a survey completed in fall 2018 covering Emerging Risks. This is the 12th iteration of the survey and provides trends and qualitative comments from respondents on a variety of ER and ERM topics. Climate change and cyber risks continue to lead the responses.

Description: This article, Spreadsheet Controls Add Risk Resilience, spotlights why spreadsheets have stood the test of time and how they help contribute to an actuary’s success. It also discusses common causes of data integrity issues relative to spreadsheets. And, offers insight into controls that can be utilized to helps actuaries solve these issues and ensure the accuracy and consistency of the data on which they base their analysis.

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: Most of our standard risk management processes are designed to work well within a shifting environment that stays fundamentally the same over time. We are likely to experience something drastically different starting soon - a major regime change. This webinar addresses how we might react to such turbulent times both to survive current issues and prepare to thrive in a new future. Participants will learn how scenario planning can be used to help envision a way forward. A case study will look at the ways that this regime change might affect our cities, how that could affect insurers and how both cities and insurers can approach the transition period as well as plotting a course for the future regime.

Description: Tomorrow’s risk landscape is shaped by macro trends and their interconnections, and those new, changing but not-yet envisioned risks will shape tomorrow's insurance needs. Karen would like to share Swiss Re's insights on new emerging risk themes and trends, climate change and its effects on the L&H business. Hopefully the session can provoke new ideas and enable us to build resilience together.

Description: Most of our standard risk management processes are designed to work well within a shifting environment that stays fundamentally the same over time. We are likely to experience something drastically different starting soon - a major regime change. This webinar addresses how we might react to such turbulent times both to survive current issues and prepare to thrive in a new future. Participants will learn how scenario planning can be used to help envision a way forward. A case study will look at the ways that this regime change might affect our cities, how that could affect insurers and how both cities and insurers can approach the transition period as well as plotting a course for the future regime.

Description: Reinsurance has been available for VA Guarantees for over 20 years. During that time, the reinsurance market for VA Guarantees has undergone frequent and sometimes violent transformations. Where does the market stand today? What forms and structures of reinsurance are available? Which VA Guarantee designs and features are easier to reinsure? Is reinsurance offered on both newly issued policies as well as in force/legacy books, and which vintages are difficult to reinsure? In an age of sophisticated hedging programs, what role does a reinsurer play in helping a VA writer manage this highly volatile risk? In this session, we will hear from a reinsurer that is actively writing new VA Guarantee reinsurance treaties in the U.S. and around the world, and from a VA writer that has successfully partnered with a reinsurer to enhance its VA product offering.

Description: In 2020, the Korean insurance regulator, Financial Services Commission (FSC), introduced a coinsurance structure allowing for full risk transfer—including investment risk, interest rate risk, insurance risk, and policyholder lapse risk—as a permitted practice. Expanding use of coinsurance in the Korean insurance market brings a suite of potential benefits to Korean insurance companies including increased financial flexibility, options to improve policyholder protection and shareholder value through optimization of business strategies. As such, FSC’s initiative and intention to introduce coinsurance opportunities to the market is commendable.

Description: A critical step in valuing a company for the purpose of financial reporting is the computation of the market value of economic surplus (MVES). This article provides a novel approach to the valuation of MVES that is stable and reasonably immune to “market noise.” Current approaches to the calculation of economic surplus of an insurance company generally define such surplus as the market value of the assets (MVA) supporting the liabilities less the market value of liabilities (MVL). While MVA is observable in the market, MVL is typically computed directly, without regard to the underlying supporting assets. Subtracting MVL from any value of assets that changes with market movements results in an unstable surplus. Consequently, a surplus that is not fully reflective of market sentiment has been rejected by many. This same approach is further used in the calculation of market consistent embedded value (MCEV) when a balance sheet approach is used .

Description: This article reviews why financial reporting controls are relevant to actuaries. It also discusses the impact of LDTI on controls and the strategic decisions that insurers need to make.