Description: Actuaries are increasingly being asked to incorporate Economic Scenario Generators into their work. Whether it be a Risk Neutral model for pricing or a Real-World version for Economic Capital modelling, using these tools can help produce a much more robust analysis. Unfortunately, these models and their underpinnings are also very complicated, which can lead to confusion. The presenters in this session will try to demystify some of this. In particular, they will address the following questions: • What is the difference between Real-World and Risk Neutral scenarios? • When should I use one or the other? • How are these models calibrated? • What are some of the misconceptions about these models?

Description: 2021 ImpACT Conference - Session 13E: Managing Cognitive Bias in ERM Processes 10.29.21 Recording

Description: 2021 ImpACT Conference - Session 14A: Credit Risk & Small Diverse Businesses Within Underserved Communities 10.29.21 Recording

Description: In this Determining Appropriate Sensitivity Tests webcast, explore sensitivity testing effectiveness, the important difference between sensitivity and stress testing and more. Understanding sensitivity testing is critical to actuarial work, especially in order to properly assess and evaluate risk factors. Come explore approached to sensitivity tests and effective evaluations of sensitivity test results in order to elevate your knowledge within the actuarial science field.

Description: Emerging risks are new or evolving, so require novel treatment by risk teams. The results from the 15th annual survey of emerging risks, sponsored by the Canadian Institute of Actuaries (CIA), Society of Actuaries (SOA) and Casualty Actuarial Society (CAS) will be shared. Long-term trends and highlights from open-ended questions will be shared, along with analysis of how the practitioner can use this information. While risk appetite statements profess a stable and consistent process, research shows that companies rotate through methodologies with management teams and that the most successful teams have the flexibility to adjust to current conditions.

Description: The SOA is interested in understanding how companies are performing scenario analysis, thinking through how various stakeholders (regulators, general public, competitors) could be reacting to a large-scale large-impact event over a multi-year period.

Description: Part 2 of a six-part series on the evolution of risk management continues with this article on dynamic financial analysis.

Description: The introduction and effective application of US GAAP LDTI have increased the scrutiny of those reviewing the updated financial results. That is because LDTI has resulted in significant changes in actuarial reserving and deferred acquisition cost (DAC) models for long-duration contracts, including significant changes to data, assumptions and required disclosures. In light of the changes, greater reliance has been put on companies’ model risk management (MRM) teams and model validations to assess the conceptual soundness and accuracy of their companies’ actuarial models and to assess that the underlying data and process utilized are suitable and appropriate. This article covers a brief background on model validation, walk through a sample LDTI-focused model validation framework/test plan, then provide insights on common LDTI-related validation observations based on the authors' prior validation experience.

Description: This article describes how insurers can expand the reach of their efforts with regard to Economic Capital EC into the broader enterprise risk management process. Some experts contend that can be done by shifting the focus towards value. EC has the potential to shed new light on valuable opportunities for insurers.

Description: The articles discusses how Principles-based approaches PBA to setting reserves and capital can be combined with Enterprise Risk Management to create a competitive advantage for an insurance company. Those companies can leverage these models by combining unique risks and strategies to measure and manage risk.