Description: The IAA Risk Book provides a set of high quality reference materials for use in managing the uncertainty of insurer risks.

Description: If a stock life insurance company is to continue to be an attractive vehicle for stockholder investment, adequate recognition must be given to the importance of the basic economic concept of return on stockholder equity. This Actuarial Note discusses return on stockholder equity as it relates to a life insurance company and is intended to stimulate further thinking in this area. From Transactions of Society of Actuaries 1969, Vol. 21, Pt. 1, No. 59 AB.

Description: discussion of March 2009 NAIC/LHATF meeting

Description: This article presents the results of the survey interviews, examining best practices as well as those areas that still remain challenging.

Description: An insurance product’s return on required equity demonstrates how successfully its results are covering the company’s basic capital. Using some simplified assumptions, it is possible to calculate this return ratio and decompose it without a full projection of liabilities.

Description: Since solvency assessment depends on a financial reporting framework, one needs risk metrics for use in financial reporting. The essay argues that conceptually, the cost of capital is the appropriate metric for reserves, while a probability level is the appropriate metric for capital. Then the essay advocates stress testing on specific scenarios as a better practical approach to ORSA.

Description: A worksite voluntary life broker, an actuarial consultant, a reinsurer, and an insurance carrier's national account manager discuss their experience during the recent surge in worksite life sales. The panel will discuss salient product features such as acceleration riders and underwriting concessions, aspects of the worksite market which make life products attractive, and the future trends in the life space for this market.

Description: Under non-Aristotelian logic, there are multiple values, or shades of gray. Indeed, there may even be unexpected results from logical combinations, like “both” and “neither.” This article discusses how this insight should be applied to the current debate between formula-driven reserves with limited assumption flexibility and the reserve principles approach. For reserve standards, we do need both actuarial judgment grounded in reserving principles and restrictive formula methods or safe harbors.

Description: The author explores recent challenges for the fast-growing life insurance market in China and suggests possible strategies to help the industry rebound.

Description: This session from the 1995 SOA Spring Meeting reviews surplus management strategies. Topics addressed include risk-based capital RBC, reinsurance, growth and profitability, cost of capital, and required surplus.