Description: This article provides a short history of the correction procedures previously developed to address compliance failures and the shortcomings of those procedures under sections 101f and 7702, laying the foundation for a sea change in the correction process.

Description: There are growing concerns that the Asian bird flu virus will evolve into a form that can be transmitted from human to human, thus unleashing a new global flu pandemic. This article uses the Spanish flu epidemic and the German life insurance portfolio to analyze the additional claims expenditure due to a pandemic.

Description: Evan Borisenko looks at previous challenging environments for the life insurance industry, such as the a period of severe stagnation in the 1930s, the increased inflation in the 1980s and a catastrophe like the Spanish influenza after the World War I. Evan explains that "while each event described above challenged the life insurance industry in a unique way, each event stimulated an equally unique solution." The article concludes that we "fight to repeat history" in a way that we as actuaries should be able to propose unique solutions with when faced with crisis in the future.

Description: Q&A with Neil Sprackling, President, US Life & Health, Swiss Re, on next-generation underwriting.

Description: This article discusses the implications of a principle-based reserve PBR system with respect to federal income taxation of life insurance companies, particularly with respect to tax reserves and their deductibility for tax purposes. The article discusses potential problems with existing tax rules for reserve deduction, what courses of action the IRS could take, and suggestions for design features of a PBR approach that would make it more consistent with current tax rules. Life insurance product tax implications are also discussed.

Description: This article attempts to dispel some of the “myths” around the perceived unique nature of Asian markets. Part I addresses the nature of the markets, the business drivers and the issues and challenges being encountered. Then, in Part II, from a risk management perspective, the current situation is reviewed, issues identified concerning the future development of appropriate skills to tackle the inevitable rapid growth in customers under management and the anticipated diversification in terms of product coverage and distribution approaches.

Description: Against the backdrop of low interest rates, rapidly expanding data analytic capabilities, and increased consumer demand for better products, many life insurers struggle to innovate their product development initiatives. RGA conducted an online survey in the third quarter of 2018, asking 30 leading life insurance companies in Japan to identify current and future product development trends. A complementary survey of approximately 4,800 policyholders of life products in Japan was also completed in 2018. The findings highlight the product trends for risk, savings and living benefit products being developed, the market segments being targeted, and how insurers are differentiating product offerings through unique features and value-added services. Companies indicated they focused new product development efforts on substandard and standard risk segments, with only 20% pursuing the preferred market. Respondents indicated the Key Performance Indicators (KPIs) being used to measure successful product development are predominantly topline – premium, face amount and number of policies.

Description: This article summarizes the treatment of changes in the basis for determining life insurance tax reserves under prior law and describes the changes enacted by the Tax Cuts and Jobs Act. It further explains the procedures for changing the basis of computing reserves under the new rules as outlined in Revenue Procedure 2019-10, the IRS’s December 2018 guidance on the subject, and discusses the uncertainties that remain.

Description: Just as the U.S. is dealing with a new surge of COVID-19 hospitalizations and death, the pandemic’s impact on the nation’s mortality rate is generating heightened interest. Two new reports issued from the Society of Actuaries provide important insights.

Description: In this article, the author talks about the Brazilian life insurance and annuity markets.