Description: Although rate structures where low-cost cohorts subsidize high cost cohorts may be justified from a actuarial, marketing, or legal standpoint, the subsidization creates risks which must be understood and monitored. This article presents the concept of subsidization signature to measure and interpret the effects of rate subsidization, and to assess the sustainability of rating structures and the sensitivity of business mix assumptions.

Description: The April 2016 Issue of The Modeling Platform

Description: This article discusses the need for more coordination and consistency in assumption setting between the pricing actuary, illustration actuary, appointed actuary, and financial reporting actuary.

Description: The next evolution of actuarial systems in the U.S. will likely be a move toward a single system solution. This article defines a single system solution and illustrates how models can be shared across actuarial functions, the potential benefits of a single system solution, and describes potential mitigation strategies to address typical actuarial concerns.

Description: An overview of the formation of the Committee of Professional Associations on Federal Statistics, initiated by the Joint Ad Hoc Committee on Government Statistics, in response to the need for statistical advisory committees to government agencies to promote better data collection and dissemination, contracting, forms clearance, planning, coordination, monitoring, staffing, and strengthening of agency functions.

Description: An outline of an additional method for exposure formula toll road diagrams, which supplements the usual one- and two-dimensional methods suggested by Gershenson.

Description: The following case study walks through the steps of a predictive modeling exercise to illustrate one way analytics can streamline the underwriting paradigm.

Description: Continuation of article from previous issue. This article illustrates the practical and financial implications of applying nested stochastic techniques to a sample product.

Description: This article discusses challenges that short-term predictions have on actuaries' reputations, both as individuals and as a profession, and discusses strategies to improve our professionalism and better manage this risk.

Description: A brief discussion on the importance of governance and documentation being in place. The article provides some resources to assist in the development, and the reasons behind having it in place.