Description: Summarizes the articles in the newsletter.

Description: Summary of the ReFocus 2018 Conference, jointly sponsored by the American Council of Life Insurers and the SOA.

Description: In this paper, we derive three important longevity Greeks on the basis of an extended version of the Lee-Carter model that incorporates stochastic volatility.

Description: The author constructed the efficient frontier of new business sales by modeling the embedded value and economic capital against a universe of possible growth rates of the three lines of business in a typical three-year planning horizon. The ERM function can use the efficient frontier of new business to provide a more rigorous analysis of the impact of growth rates on the firm’s overall capital efficiency and value creation, hence forming a feedback loop with the businesses in the planning process to optimize the growth strategy.

Description: This paper considers the problem of actuaries acting as advisers to individuals. This activity is covered by regulations, discussed in the paper, that currently recognize other professions but not actuaries. The paper recommends that actuarial organizations lobby the relevant legislative and regulatory bodies to provide actuaries pursuing an investment-focused career path with the same exemption status as other professionals.

Description: Exploration of sources of volatility in retiree health valuations, noting how volatility arises and might be mitigated, with discussion of valuation parameters more problematic for retiree health benefits than for pensions. Three significant influences on retiree health valuation volatility are covered-- changes in benefit level, fluctuations in cost level, and alterations in eligibility for, or duration of, benefit – and attention focused on the last two. Specific conclusions result in recommendations, which are supported by practical examples contrasting volatile measurement results with those likely from the recommended practices. Theoretical discussion includes health claim variation, health trend usage, financial economics, option pricing, discount rates, and deterministic vs. stochastic modeling.

Description: The moderator will review senior health products: Medicare supplement, Medicare risk, hospital indemnity policy HIP, cancer, accidental death AD, and employer continuance. Discussion will include product design, pricing, administration, regulation, and marketing. From the Record of the Society of Actuaries, Vol. 21, No. 1.

Description: This article discusses the current state of the IAIS' initiative on their group Insurance Capital Standard.

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).