Description: This paper shows that the Esscher transform is an efficient technique for valuing derivative securities if the logarithms of the prices of the primitive securities are governed by certain stochastic processes with stationary and independent increments. From the Transactions of Society of Actuaries 1994, Vol. 46.

Description: This article offers insights about the United Technologies Corporation lifetime income approach and information on the design, administration and acceptance.

Description: The author suggests that the optimal use of capital requires one to find a way to strike a balance between the conflicting desires for maximizing long term profit and minimizing short term loss.

Description: From the April 1982 Society of Actuaries meeting in Houston. Discussion of how the insurance industries in several countries have dealt with high levels of inflation with respect to the development and marketing of insurance products. Also discussed: I. the overall business and economic environment 2. the taxation structure of insurance companies 3. the availability of suitable investments 4. the insurance regulatory climate and 5. the structure of worldwide capital markets Possible applications to U.S. insurance in the 1980's were explored.

Description: This paper proposes to put the environment into financial markets. It explains how to do it, and why the financial approach is practically the only one able to stop and invert environmental degradation. The author concentrates on deforestation which is the largest environmental problem in the third world, and explains how to start the project and what kind of optimization problems should be solved for applications of the project.

Description: Many top-performing businesses aren’t just risk aware, but rather risk intelligent. Such a posture helps prepare companies for a major event and can demonstrate to a regulator or auditor that an appropriately strong control framework is in place. Better still, companies gain real strategic value from a “risk adjusted” understanding not only of their threats and vulnerabilities, but also the upside opportunities associated with various risks. It starts with having both qualitative and quantitative information to identify, assess and manage risks. Strategic risk management, at its core, is about creating value by increasing transparency and accountability, and quality of information. More than a mere compliance exercise, effective risk management enables more informed strategic decision making, increased accountability and transparency, a greater likelihood of organizational success, and – ultimately – competitive advantage, as borne out by many studies that correlate risk management and financial results.

Description: How assumptions like market returns and variable like saving rate should be incorporated into sound financial planning. How to analyze retirement readiness.

Description: This essay advocates that the transition from DB to DC plans won't be complete until plan sponsors offer programs of retirement income in their DC plans. The essay discusses the relevant actuarial and behavioral issues.

Description: The article is based on a study of causes of insolvency and decisions made by management, regulators, and policyholders over the life cycle of the insolvency.

Description: Three papers use sophisticated actuarial methods to develop a straightforward retirement income strategy that can be implemented in virtually any IRA or 401(k).