Description: Over the last decade, the actuarial career has gained significant attention of entry level job-seekers as it continues to be one of the consistently top rated jobs in the market. There are different avenues to break into the profession, but one of the most common is through an Actuarial Student Program, where a company formally supports the exam progress of individuals through paid study materials, exam fees, and time off to study. Most programs also include an emphasis on development of leadership and communication skills. As the recruiter for MassMutual’s Actuarial Student Program, I get the opportunity to regularly share with candidates why I believe a student program is such a powerful springboard for a successful actuarial career. Profiled in the article is two actuarial students and one recent actuarial student program “graduate” to highlight the value a student program can bring to one’s professional development.

Description: This article focuses on one fundamental modeling assumption — the choice of a benchmark rate or risk-free rate. The author looks at this bond market assumption as a case study of how one needs to monitor fundamental market changes for their impact on assumptions.

Description: New Zealand is about to launch its first variable annuity with guaranteed lifetime withdrawal benefits. The product design is mindful of the lessons from the financial crisis in the United States, Europe and Japan.

Description: Generally accepted accounting principles 'GAAP' are those that apply to external financial reporting of publicly owned business enterprises. The principles that constitute GAAP vary between stock and mutual insurers, from product class to product class, and according to the purchase status of the business. This paper highlights additional reading materials that provide concise information regarding GAAP principals.

Description: Discussion of the merits of solvency versus going concern funding targets for pension plans, and the connection with different risk-sharing deals.

Description: Is Risk/Return a sound tool for decision-making? No. It is not consistent, not objective, distorts decision and degrades governance. Why? What shall we do then?

Description: The revised 2013 Study includes three pivot tables: Individually Billed Group Life, Self-Administered Group Life, and AD&D, which will enable companies to perform their own analysis to supplement the findings of this report.

Description: Understanding the Deferred Acquisition Cost (DAC) asset balance movements from one reporting period to the next can be a challenge when reportinged under FAS 97. The mechanics of FAS 97 call for an amortization ratio (i.e., k factor) that forces the amortization of the DAC asset to be matched to the earnings received over the life of the product. However, the fact that the k factor is dynamically set results in “unlocking” components of the DAC rollforward. This article shows how the basic equation for the amortization ratio can be used to derive equations that provide insights into what the DAC balance represents. Furthermore, partial derivatives of these equations are used to show how unexpected changes in the Estimated Gross Profit (EGP) stream impact the amortization and unlocking components of the DAC rollforward.

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

Description: Reviews basic desirable features in an economic scenario generator. Discusses basics of model structure and validation process