Description: The Federal funds rate increased by 4.25% in 2022 with further increases in 2023, which have already resulted in a liquidity crisis for a few banks. As the rapid increase of the interest rates pushed the new money rates above the yields of many life insurers’ investment portfolios, insurance companies are facing a dilemma between compressed margins from peer pressure and the concern with liquidity shortfalls and realized capital losses should mass surrenders happen. This paper discussed main emerging risks under rising interest rate environment, and several ways to mitigate these risks.

Description: The paper demonstrates that the most popular rationalization for evolving glide paths is flawed and should be discarded. The paper also demonstrates that glide paths should generally evolve for investors that endeavor to optimize outcomes and reevaluate their portfolios regularly.

Description: Constant Proportion Portfolio Insurance (CPPI) performance is assessed on realistic assumptions and dynamic strategies to mitigate the so-called ”gap risk”.

Description: Summary of Investment Council sponsored meetings as 2015 annual meeting

Description: Readers are given an introduction to a PBA Implementation Guide for Life Products.

Description: Feature article describing the events of the Valuation Actuary Symposium in Indianapolis, In.

Description: Interview with investment actuary Carl Hess, head of Towers Watson global investment practice, on his background and career path.

Description: An overview of the articles in the August 2012 issue of Risk Management and a list of winners of the most recent call for papers, “Risk Metrics for Decision Making and ORSA.”

Description: Volatility managed funds, which focus the measurement of an investor’s risk appetite on the volatility of the portfolio, have grown popular in the Asian markets recently, particularly in Japan. This article discusses a typical volatility managed strategy and presents performance comparisons between volatility managed funds and other comparable market strategies. The advantages of target volatility managed funds to investors and insurers are also included.