Description: S&P Global released its initial version of proposed changes regarding its Insurer Risk-Based Capital Adequacy methodology and assumptions on Dec. 6th, 2021. Unlike prior guidance notes or criteria releases, the proposed changes comprehensively updated the current S&P rating criteria released in 2010. These updates would directly impact many insurers. S&P Global anticipates that 10 percent of existing ratings in the insurance sector would be impacted and the change would lead to more positive rating implications than negative impact. This article focuses on the proposed changes on the S&P risk-based capital (RBC) vs. the current model, then simulate impacts to a representative U.S. life insurer through an illustrative case study.

Description: This report updates the Canadian Mortality Data through 2021 in the Human Mortality Database and Canadian Human Mortality Database, including methodology, data sources, and internal consistency checks.

Description: Businesses across the board have been drastically impacted by the effects of COVID-19 over the course of 2020, and insurance was not immune. Perhaps most relevant to this industry’s current capital and liquidity concern is the prevailing low interest rate environment. This has been a global trend in the last decade, and treasury rates in much of the developed world are at or near zero. Reduced investment returns limit an insurer’s ability to achieve their desired return on equity, eliminating previously profitable strategies that depended on the leverage of life and annuity balance sheets. Focus and activity have instead shifted to other methods to counteract the low interest rate markets and accompanying capital strain. Examples include increased mergers and acquisitions (M&A) activity within the insurance industry and an increasing focus by private equity firms in the insurance market for asset-intensive products, both of which reflect the goal of increasing yield rates on capital.

Description: Discuss a comparison of the U.S. general and insured population mortality experience and how COVID-19 and non-COVID-19 excess deaths impacted the populations differently. Discover the population mortality experience in the UK with a focus on the recent emergence of excess deaths for non-COVID causes. The long-term implications on the insured population will also be explored. Wrap up with a discussion of different conditions of long COVID, including organ impairments.

Description: Discuss a comparison of the U.S. general and insured population mortality experience and how COVID-19 and non-COVID-19 excess deaths impacted the populations differently. Discover the population mortality experience in the UK with a focus on the recent emergence of excess deaths for non-COVID causes. The long-term implications on the insured population will also be explored. Wrap up with a discussion of different conditions of long COVID, including organ impairments.

Description: it discusses the framework and modeling of the market consistent valuation of fixed indexed annuity, against the backdrop of the convergence of accounting standards and internal risk management.

Description: The pandemic and other current events have greatly impacted the risks that individuals face during retirement. Join us to explore this topic as the results of the Society Actuaries 2021 Retirement Risk Survey are presented. Discover the findings regarding retirement concerns, preparedness and understanding individuals in the U.S. nearing retirement or those who are already retired. This marks the 11th iteration of this biennial survey completed through the SOA Research Institute’s Aging and Retirement Strategic Research Program.

Description: This article provides an EV overview, current industry usage, key considerations illustrated by MetLife’s strategic spin-off of Brighthouse Financial, as well as implementation notes.

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: Investing for retirement in other countries is different from investing for retirement in the U.S. and Canada. In developing countries, there are fewer investment opportunities and domestic markets are smaller and less liquid. National retirement systems may be established in part to support government debt issuance and to help develop domestic capital markets. Investment policy objectives tend to evolve over time as a country and its retirement system(s) develop together. Come broaden your horizons by painting a picture of a different investment paradigm than you are used to using examples from many countries around the world.