Description: This session from the 1995 SOA New York Meeting addresses asset prepayments including emerging prepayment experience in the mortgage-backed - CMO security arena, special modeling considerations when addressing prepayments and the NAIC's FLUX model and the scenario and assumption specifications of that model. From the Record of the Society of Actuaries, Vol. 21, No. 2.

Description: This panel discussed studies of the risk of loss due to changes in the interest rate environment. It addressed why the C-3 risk is important and how inflation and stability in interest rates can affect the financial soundness of life insurance companies. There was also a discussion of the theoretical work being carried out to calibrate the C-3 risk of variation in interest rates and to what extent the valuation actuary can properly recognize the risk of loss from changes in the interest rate environment within the framework of valuations laws and regulations.