Description: Obsolescence of physical assets and processes is a major component of operational risk for some companies. A simulation experiment shows that managers, who consider the retirement and replacement of individual assets in isolation, have rational incentives, due to risk aversion and uncertainty, to defer the replacement of assets past a time that is optimal from the perspective of the shareholder who owns the entire portfolio of such assets. This results in measurable wealth destruction, —and a demonstrable opportunity to significantly enhance a company’s value. A practical decision model for the replacement timing of fixed, physical assets, which creates wealth by minimizing the long-term consumption of scarce resources, is provided.

Description: The abstract for the paper The Great Debate on the Outlook for Human Longevity: Exposition and Evaluation of Two Divergent Views.

Description: This abstract describes a paper that demonstrates the calculation of parameters for a Gamma-Exponential Mix distribution with moments matching the first three moments of the expected claims by amount for an arbitrary portfolio of life insurance policies.

Description: This is an abstract article on the clustering method for analyzing and classsifying insurance policies by Yefu Kou. ARCH 2008, Issue 1.

Description: This abstract describes a paper that uses a combination of several analytical methods to find closed-form solutions to the embedded options of the plain-vanilla GMWB rider.

Description: This is the Health and Social Care Analysis Regarding the State of Canadian Women Living in the Alone Stage of Retirement paper authored by Douglas W. Andrews and Lori Curtis for Session 4B of the January 13-15, 2020 Living to 100 Symposium in Orlando, Florida.

Description: This is the abstract of a paper that presents an iterative procedure for computing the lower approximation of the Snell envelope - a value process of the American option. The method produces an increasing sequence of approximations of the Snell envelope from below, which coincide with the Snell envelope in discrete time after finite steps. Advantages of this method compared with other well-known traditional approaches are discussed first. Then, elaborate algorithm details associated with theoretical proofs are discussed. An example of constructing the lower approximation is available with numerical results, which are demonstrated in figures. Some characteristics of the implementation in the computational environment and an improvement are mentioned at the end.

Description: This is the abstract for the paper on optimal reversible annuities to minimize the probability of lifetime ruin.

Description: This abstract describes a presentation that describes the Canadian Institute of Actuaries’ University Accreditation Program, whose goal it is to provide exemptions for some preliminary examinations while maintaining the strong standards of the exam-based entrance to the actuarial profession.