Description: Discusses the market, demographic, and macroeconomic factors that affect actuaries' choices for the assumptions they use in the pricing and valuation of many insurance products.

Description: While the major market crash subsequent to the widespread contagion of the COVID-19 virus was readily predictable, the rapid recovery and ongoing growth subsequent to it was not. Market dynamics around the recovery resist characterization by most traditional analytical approaches. In examining the circumstances around the emergence of a large retail class of investors, one sees that ingrained human tendencies, particularly optimism bias, have fueled much investor behavior responsible for the recovery. Understanding this makes it possible to predict potential future crashes and develop behavioral interventions for subsequent market recoveries.

Description: Financial illiteracy has been identified as a major obstacle to effective retirement planning for Americans. Anna Rappaport’s article provides actuaries with helpful ideas about ways to make the public more aware of the increasing need for financial literacy and some of the resources currently available to help individuals.

Description: In insurance companies and pension plans currency risk arises when a company has future obligations in one currency and investments in another currency. The question that is often asked is whether this currency risk should hedged or not.