Description: LDTI’s introduction has forced many insurers to examine their existing operations and technologies. They must determine how to optimize compliance efforts while balancing data, analytics and system modernization considerations to achieve maximum value. This article will examine the four key facets—the data, technology, processes, and people—essential to any successful LDTI exercise. It will also touch on the various approaches for tackling LDTI and how a modernization mindset can help insurers realize much greater transformation for the business.

Description: Market consistent valuations require path-dependent discounting for scenarios. IFRS 17's requirement to discount best-estimate cashflows using locked-in rates could give non-sensical results in many instances. This article describes a technique for calibrating each of the scenario's cashflows so that they can be discounted with other discount factors or curves without distorting the value of underlying options and guarantees.

Description: This article discusses the risk management approaches of insurers. The author described some of the current practices of the total return approach, how the total return approach is used in managing risks as a process, and a model that takes future sales into consideration and determines the appropriate fair valuation method of an ongoing business.

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.

Description: Actuaries and their IT counterparts are required to collaborate more frequently and on more complex projects than ever before. The recent accounting changes (LDTI, IFRS 17, PBR), investor demands for increased transparency, and competitive pressures have led to many insurers undertaking large actuarial and financial transformations. As a result, senior management is challenging their actuarial and IT leaders to develop new processes that use data in new and improved ways. The actuarial and IT functions are being tasked with not only delivering on changes to systems, processes, and data, but also with rethinking how their teams collaborate and interact

Description: The paper discusses the role of a regulatory actuarial auditor, the risk focused examination process and the policyholder protection provided by the states, and the impact of varying state laws on the valuation process, and the importance of avoiding actuarial software becoming a black box. There is a discussion of the potential problems presented by the potential use of artificial intelligence, as well as suggestions for academic researchers to answer the pressing questions of whether artificial intelligence can potentially be used for valuation purposes.

Description: 1998 SOA Annual Meeting, New York. Panelists discussed the activity of the newly emerging mutual holding company structure. Advantages and disadvantages of a MHC structure were addressed.

Description: In this session, the presenters will discuss implementation challenges with US GAAP Long Duration Targeted Improvements (LDTI) for life and annuity products, and methods and changes to actuarial models their organizations use to overcome the challenges. Presenters will specifically discuss the following topics: The current GAAP reporting framework can create challenges with transparency for annuity insurers. Many annuity insurers report on adjusted earning measures in addition to US GAAP, believing the adjusted measures more accurately reflect earnings. Using a variable annuity framework, presenters will discuss key differences between GAAP and adjusted earnings measures, key challenges and their solutions for LDTI implementation, and the potential for LDTI to reduce the need for adjusted earnings measures and increase transparency. For FAS 60 based life products, insurers need to update and modernize the assumption setting process. Presenters will cover methods and the decision process whether to use existing data or new experience studies to review product experience and set assumptions. There is a lack of clarity and guidance for development and implementation of LDTI in a reinsurance framework. For reinsured life products, LDTI guidance is clear on the direct side of the financial statements, but the guidance is less clear on reinsurance ceded values. Presenters will discuss methods and changes to actuarial financial models that are needed in order to ensure the direct and ceded values are consistent.

Description: The IAA has published a textbook-sized monograph on implementing risk adjustments under IFRS 17. This monograph will be helpful to those calculating the risk adjustment and those who want to know what the risk adjustment represents and how if affects period to period reporting.

Description: Discussion of the sensitivity of GAAP reserves to certain assumptions made and methodologies used. Followed by a discussion paper