Description: This report aims to help actuaries and other interested parties to define the relative differences in managing risks between the insurance and banking industries. This report guides actuaries and others about change risk management practices to prevent future financial failures. The paper seeks to examine what factors account for the differences in the United States, compared with Canada about the underlying causes and effects of the most recent crisis with financial institutions.

Description: Easy access computing power is harnessed to approximate ruin probabilities. The dynamics of the traditional insurance model are stated in the form of period to period constraints. This allows the development of a life-table with the survival probabilities for a given set of parameters. Given the spreadsheet approach of the model, sensitivity analysis to study the impact of different parameter values and loss variable distributions can be easily implemented.

Description: A primer on extreme event modeling and mitigation for practitioners, it covers the complete cycle of extreme event risk management, from identifying experience data sources, to extreme event detection, to modeling and dependence analysis, and finally to monitoring and mitigation.

Description: This report examines the use of a copula approach to build a predictive model to estimate the amount of economic capital a life insurance company needs to protect itself against an adverse movement in interest rates, mortality, and other risk drivers.

Description: This report looks at identifying drivers of systemic risk to China’s insurance industry and develops a measurement method for systemic risk as well as systemic risk dependence between the insurance industry and other industries.

Description: This report looks at identifying drivers of systemic risk to China’s insurance industry and develops a measurement method for systemic risk as well as systemic risk dependence between the insurance industry and other industries.

Description: We find the necessary and sufficient conditions for fitting five given moments by a triatomic distribution. We consider three examples drawn from fire large spread, individual life medium spread and group life small spread insurance data, fit them with triatomics, and compute the ruin probabilities using well known formulas for discrete and for combination of exponentials claim amounts. We then compare our approximations with the exact values that appeared in the literature.

Description: This report discusses management decision making practices and the need for actuaries to build the appropriate level of variability for management actions in stochastic models to achieve a more realistic range of future experience among the stochastic scenarios.

Description: This research report examines readers to Insurance-linked securities (ILSs) emphasizing catastrophe bonds (CAT) and industry loss warranties (ILWs).

Description: This paper reviews the Value At Risk concept, a financial risk management tool and discusses its application to insurance. Difficulties with this application are described and modifications suggested. An alternative tool, expressed as a risk adjustment to economic value, is suggested as an additional measure.