Description: This article discusses the shift of capital in the 1980s from traditional Whole Life Insurance to Universal Life, Term, Variable products and Managed Care. Restructuring in the insurance industry presents challenges and opportunities for actuaries. The author exhorts actuaries to be part of the solution by updating actuarial science and expanding into new areas.

Description: This paper outlines a framework for managing life insurance company surplus. This framework can be used to assess capital investments, control the amount of capital used, monitor return on capital, and take actions when results deviate. From Transactions of Society of Actuaries 1986, Vol. 38.

Description: Presented at May 1986 Spring Meeting. This session discussion is about how much surplus is needed, how it is determined, treatment of participating policyholders, approaches for measurement, and regulatory and professional body requirements affecting surplus relief reinsurance.

Description: This article describes opportunities and challenges presented to Corporate Actuaries caused by swings in investment gains and losses, the cyclical nature of health insurance results, and increased investments in affiliates which divert use of surplus increase from organic growth to acquisitions. margins were much higher

Description: This paper deals with the selection of appropriate interest and inflation assumptions, which is one of the most important considerations in the valuation of a defined benefit pension plan. The paper begins by describing a simplified model in which the only important consideration is the selection of an appropriate differential between interest and inflation assumptions. The discussion then considers some situations that might lead the actuary to attempt to select a realistic level of interest and inflation assumptions, in addition to an appropriate differential. The author's conclusion is that in some situations the absolute level of the interest and inflation assumptions can be all but meaningless, and the differential between the two assumptions is the important factor. In other situations the use of this technique will produce serious inaccuracies in the valuation results. As always, the actuary must analyze each situation in order to determine which of the available techniques will produce the best results with the least effort, given the degree of accuracy required. From Transactions of Society of Actuaries 1976, Vol. 28.

Description: Presented at October 1986 Annual Meeting. This session discussion is about how capital should be measured, cash flow based surplus, what performance measures are reliable, return on equity, book gains, terminal funds, how much surplus is needed, business planning for future capital needs, capital restructuring, how should multiple risks be combined and qualitative issues versus numbers as they relate to future growth.