Description: This Task Force was charged to develop and understanding and quantification of risks of loss from the combination of C-1, C-2, C-3 and C-4 risks and the implications for insurer financial management. The Task Force concluded that analysis of cash flows would be the key to addressing these matters. This report is a series of papers prepared by various individuals on cash-flow analysis approaches to addressing these issues.

Description: The impetus for this paper is a concern that a unification of pricing, valuation, and management-basis financials may be essential to ensure the viability of life insurance companies in the variable economic environment of the foreseeable future, which will have serious effects on interest-sensitive products. The paper offers hypotheses on which any unification should be based. The proposed unification is structured on an equity capital management approach and on a variation of the level-return-on-equity accounting method. Discussions of this paper are included.

Description: This study is intended to educate insurance professionals on historical insurer impairments and insolvencies and possible future prevention indicators.

Description: This study is intended to educate insurance professionals on historical insurer impairments and insolvencies and possible future prevention indicators.

Description: Scenario generators used in financial models to quantify risk are sometimes described as being as either “real-world” or “risk-neutral”. The difference is in the treatment of the market price of risk. This report explores the relationship between real-world and risk-neutral scenarios and when it is appropriate to use each type.

Description: This case study is intended to educate insurance professionals on historical insurer impairments and insolvencies and possible future prevention indicators.

Description: This paper discusses gain and loss analysis for group insurance under the following headings: Nomenclature and General Principles, Sources of Gain and Loss under Theoretical Conditions, Gains and Losses Arising in Practice, Comparison with Annual Statement Results and Effects of Changes in the Company's Dividend Formula. Discussions of this paper are included.

Description: This paper describes the application of source of earnings 'SOE' analysis methodology to the reported pre-tax GAAP income of universal life and other interest-sensitive life and annuity products.

Description: This case study is intended to educate insurance professionals on historical insurer impairments and insolvencies and possible future prevention indicators.

Description: This case study is intended to educate insurance professionals on historical insurer impairments and insolvencies and possible future prevention indicators.