Description: As a life reinsurer, understanding mortality risk is mission critical. Superior models of mortality risk lead to more competitive pricing in profitable market segments and more efficient use of capital. Surprisingly, modern statistical tools such as predictive modeling have not previously been used to model mortality data to gain this edge. In this paper, we present the use of a predictive modeling technique called projection pursuit regression PPR to model mortality data. We first describe the process of creating a PPR model using inter-company mortality data collected by the Individual Life Experience Committee of the Society of Actuaries, and present the resulting model. We then discuss the process of using this model as a starting point for creating a more detailed PPR model of internal company mortality data.

Description: State insurance regulators discuss transfer of risk, letters of credit, surplus relief, mirror reserving, offshore reinsurance, and accounting credit for reinsurance. From the 1987 Record of Society of Actuaries, Vol. 13, No. 4B.

Description: Key considerations when modeling reinsurance to calculate reserves under PBR as well as a case study examining the impact of reinsurance structures on reserves.

Description: Panel discussion focused on the Effective Use of Capital. Topics included: 1. Definition of capital 2. Appropriate level of capital and surplus in a life insurance company 3. Alternatives for deploying capital 4. Returns a life company should demand on invested capital 5. How much a company should charge for lending its capital in reinsurance transactions

Description: This article contains a summary of some of the presentations given at the October 2012 SOA Annual Meeting. This article does not cover all sessions that are related to product development, but shares observations that have been made by various members of the SOA Product Development Section Council.

Description: Property-casualty insurance companies tend to focus on avoiding and controlling their exposure to reinsurance credit risk. This paper advocates switching from this risk avoidance and compliance mentality to a probabilistic and market-based view in which one seeks to measure, hedge, exploit and optimize risk. Presented at 2010 Enterprise Risk Management Symposium, Society of Actuaries, April 12-15, 2010.

Description: Discussion of China’s reinsurance industry.

Description: Panelists discuss pricing issues regarding supplemental products, which for this purpose, are defined as cancer, specified disease, student accident, and other special risk accident and health coverages. From the Record of the Society of Actuaries, Vol. 25, No. 2.

Description: This article discusses the current status, including differing views, on the treatment of risk transfer in reinsurance agreements under the principle-based reserves PBR approach.

Description: View the complete issue for the August 2014 Reinsurance News newsletter.