Description: Modeling Approaches and Challenges focuses on approaches to real world simulation and the challenges and considerations in real world simulation. Topics include: A frequency domain approach to build realistic multi-horizon scenarios. (Ortec approach) Cascade models structure linking models for major asset classes and economic variables. (Moody’s approach) Overview of models, calibrations & approaches within the context of different use cases. Deterministic & stochastic approaches. Importance of model re-calibration flexibility. We will also discuss specific insights into considerations and challenges in real world simulation, which include topics like: Setting capital market assumptions and/or calibration targets. Assumptions about correlation and causality. Calibrating the model to capital markets assumptions. Validating the model against capital market assumptions. Role of history, market data and stylized facts. Importance of back testing. Calibrating the model to multiple investment horizons. Inclusion of alterative asset classes such as private equity, infrastructure, and direct real estate. Associated issues of limited data, illiquidity and greater uncertainty about calibration targets.

Description: 2021 Life Meeting - Session 9D: MRBs: Special Considerations for Fixed Indexed Annuities 9.1.21 Recording

Description: Statutory and GAAP metrics are useful for regulators, investors, and other external parties who require a consistent basis for viewing snapshots of companies at a point in time, however their uses are more limited for managers who are tasked with making strategic decisions. Many insurers are turning to internally developed metrics such as embedded value (EV), value of new business (VNB), and economic capital (EC) for better insights toward applications such as capital allocation, pricing, and risk management. At the same time, GAAP changes are underway via long duration targeted improvements (LDTI), and few have set their plan for non-GAAP adjusted earnings. Momentum from LDTI might have an extended influence, leading to changes in non-GAAP measures. Discuss motivations and techniques for developing internal reporting metrics. Begin with a brief overview of EV, VNB, and EC concepts andexplore specific shortcomings of Stat and GAAP, and how those shortcomings are addressed by alternative metrics.onclude with some implementation case studies. By attending the session, you will: - Understand basic EV/VNB/EC concepts and the motivations behind them. - Understand the key changes LDTI introduces for non-GAAP earnings. - Identify quick wins and longer-term considerations for enhancing financial reporting capabilities

Description: Like it or not, variable annuity (VA) liabilities are inextricably linked with the equity markets. Generally, up markets reduce the excess benefit liability and increase fee income, while down markets increase the excess benefit liability and reduce fee income. Given the volatility, most VA writers will hedge to meet their needs. In this session, the presenters will discuss the need for hedging, regulatory requirements and how companies ultimately determine their hedging strategies.

Description: An increasingly common question in our industry is - what should actuaries be doing and what should IT be doing? This gets at the difference between the self-service model, where actuaries have minimal reliance on ITand the shared-service model, where IT is a partner that helps with goals such as developing capabilities and running production models. The presenters will cover the unique value proposition of actuarial and IT functions and use that context to explore the pros and cons of the two models. They will ask what is going to drive the operating model in the future, considering the implications of trends in governance, technology toolkit and company culture. The presentation will be followed by interactive discussions on three case studies related to how IT and actuarial teams can work together most effectively, allowing the group to learn what works and what doesn't work from other companies approaching these challenges.

Description: 2021 Life Meeting - Session 4E: LDTI Earnings Analysis for Life Products 8.31.21 Recording

Description: 2021 Life Meeting - Session 8F: Smaller Insurance Company Chief Actuary and Appointed Actuary Forum 9.1.21 Recording

Description: 2021 Life Meeting - Session 7F: A New Frontier for Reinsurance Accounting - LDTI vs. IFRS 17 9.1.21 Recording

Description: A panel of actuaries and investment experts share their experience with the AG53 requirements for Asset Adequacy Testing. They will discuss challenging areas in the inaugural year of the consideration of complex assets as well as discuss potential areas of future regulatory expectations.

Description: Sales of index-linked annuities such as FIAs and RILAs have been setting new records while sales of traditional VAs have been declining. This webcast will survey the latest generation of FIA and RILA products, examining the impact of the current market environment and how the landscape is expected to change when the FED starts cutting interest rates.