Description: Non-guaranteed elements are parameters of life insurance and annuity polices that are not fixed when the policy is issued but may be changed from time to time by the insurance company. They emerged in the United States and other countries as features of Universal Life and similar products designed to make insurance more competitive in an environment where fully guaranteed products did not have sufficient flexibility to respond to rapidly changing conditions. This overview covers professional guidance, regulations and practical issues with reviewing and revising non-guaranteed parameters.

Description: A literature review was performed on mortality improvement, socioeconomic differences in mortality and their links to specific causes of death, and methods for analysis. It highlighted the fact that socioeconomic status (e.g., income and education) is closely linked to differences in mortality and that the longevity gap between socioeconomic groups is growing over time. It also informed the selection of key variables and the need to view mortality improvement as a complex interaction between specific causes of death.

Description: As results emerged showing the influence of COVID-19 on recent mortality, the Society of Actuaries Research Institute’s Mortality and Longevity Strategic Research Program Steering Committee (MLPSC) began to ponder what it means for the future. Was the coronavirus pandemic just a temporary shock to U.S. mortality with mortality quickly returning to prepandemic levels upon its conclusion or a lingering factor in future U.S. mortality from the potential occurrence of new coronavirus variants, post-COVID-19 conditions (“long COVID”), deferral of needed health care treatment, a fatigued health care system and other elements? Only time will provide the answers to these questions.

Description: This study and report have the following primary purposes: 1. Evaluate recent mortality experience relative to standard industry mortality tables, at a broad level. 2. Observe general trends in mortality experience by key policy characteristics. Where possible, provide insights into the industry changes contributing to the observed trends. 3. Provide the underlying data in spreadsheet pivot table format for further investigation by qualified actuaries. Provide data also in a delimited text file and Tableau dashboards for use with other software tools.

Description: This report provides an educational background on the process of building predictive models, as well as a detailed presentation of the model results. Predictive models provide a method to capture variation by multiple variables and understand the relationship between these variables. This allows for a deeper understanding of key variables than is possible under a traditional approach.

Description: For over a decade, life insurers have been challenged by a low interest rate environment, making it difficult to find investments with adequate yield, manage corporate spreads, and offer competitive products to consumers. While interest rates are still low compared to the early 2000’s, volatility in rates over the past year, during which the 10-year U.S. Treasury rate has increased by nearly 100 basis points, could indicate a longer-term trend of rising rates. What would a rising rate environment imply for life insurance writers? Insurers able to react to interest rate changes with agility can remain relevant in an evolving economy, protecting themselves and their policyholders. This article addresses risks and considerations faced by insurers with respect to in-force retention, pricing and product mix, and reinsurance and mergers & acquisitions.

Description: The presenters in this classic session will explore protection and accumulation products as well discuss the current state of the hybrid Life/LTC market. They will also examine the latest trends and the challenges to innovation and highlight key factors impacting the product actuary including the impact of technology, regulation and competitive environment. 

Description: Read the April 2020 issue of Product Matters! published by the Product Development Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.

Description: Since the outbreak began in January, numerous research groups throughout the world have developed models to forecast the number of deaths that could result from COVID-19.

Description: Over the last few years, many direct companies have started inforce management programs and are now navigating what actions can be taken to optimize the business. At the same time, the legal, compliance, and regulatory environments are also changing. The presenters will explore the development and implementation of programs such as changing non-guaranteed elements or efforts to improve experience while considering the changing compliance environment, including New York Regulation 210, ASOP2 and litigation challenges.

Description: Near the end of a pension plan's lifespan, after benefit accruals have ceased and the plan has reached fully funded status, a plan sponsor has the option to begin the plan termination process immediately or to maintain the plan for an extended period of time (often referred to as 'hibernation' as an alternative to termination). While immediate termination appeals to some plan sponsors, others choose hibernation for a number of reasons, including paternalism, fiduciary obligations, perceived cost differentials or simple inertia.

Description: This session meets the needs of life insurance actuaries who are focused on experience studies, assumption setting, and/or product development. The presenters will use industry data to illustrate how policyholders react to product design, such as premium jumps in the PLT period and UL with high interest rate illustration, and trends in the life insurance market, including the introduction of smoking distinguished rates and the shift towards an increasing number of preferred underwriting classes.

Description: Hear an overview of InsurTech trends and challenges globally. Then, presenters will dive deeper to talk about InsurTech's application in insurance product distribution via smartphones and insurance company's risk selection, risk evaluation, risk control and the related challenges brought to actuaries. Specific applications and cases will be presented.

Description: The Canadian Institute of Actuaries and Society of Actuaries Committee on Life Insurance Research, the Product Development Section and the Financial Reporting Section, sponsored this study investigating how the Canadian life insurance industry is utilizing predictive modelling.

Description: The Society of Actuaries are once again offering a seminar that investigates all aspects of life insurance, annuity and long term care product tax compliance. Developed by the Taxation Section, participants will be brought up-to-date on recent Internal Revenue Service (IRS) guidance and learn about the newest tax issues related to product design and administration. Legal, IRS and product development experts will provide vital insights into the challenges of developing and administering products within the requirements of the Internal Revenue Code (IRC), and allow ample opportunities for networking, questions and information exchange.

Description: Provide high level summary of predictive modelling.

Description: This abstract describes a paper that provides a quantitative framework in which two risk management strategies are mathematically formulated.

Description: This paper summarizes the results of a survey of waiver of premium/monthly deduction rider assumptions and experience.

Description: This report examines options for analyzing periodic changes in VM-20 reserve amounts.

Description: This report considers a hybrid portfolio that combines life and general insurance aspects.

Description: This report is a summary based on current actuarial practices around the development and use of policyholder behavior assumptions including the use of dynamic modeling approaches. The research team surveyed and evaluated current practices in the industry; and highlighted current thinking on modeling human behaviors outside the life insurance industry. This project was sponsored by the SOA’s Financial Reporting Section and the Committee on Life Insurance Research.

Description: The Required Minimum Distribution (“RMD”) Working Group of the Society of Actuaries’ Taxation Section has completed new research identifying considerations for actuaries and annuity insurers in determining the actuarial present value of additional benefits for computing required minimum distributions under a deferred annuity contract. The paper discusses types of benefits covered under Treasury Regulation Section 1.401 (a)(9)–6, Q&A–12 as well as possible assumptions and methods for calculating the actuarial present values of additional benefits provided under an annuity contract. The appendices show examples for a variety of additional benefit types. EXCEL spreadsheets for the appendices are also provided. The discussion presented in the paper and the examples are provided for educational purposes and are not to be viewed as an authoritative interpretation of Q&A–12.

Description: The interaction of section 7702 cash value accumulation test [CVAT] and state nonforfeiture laws [SNFL] create a dual limitation on traditional life insurance contratcs. CVAT limiting the maximum permissible cash value and SNFL requiring a minimum cash surrender value. This article examines these dual limitations.

Description: This research report on the effect of deflation or high inflation has six sections: 1. The first section provides background on inflation, describes some problems in measuring inflation, and explains some of its effects on an economy. 2. The second section reviews historical inflation rates. 3. The third section examines the effect of inflation or deflation on the property-liability and life insurance industries. 4. The fourth section proposes risk mitigation strategies for insurers to cope with either deflation or high inflation rates. 5. The fifth section describes a publicly available model that can be used to develop inflation/deflation projections under a regime switching format that can readily be adjusted to reflect current financial uncertainty. 6. The sixth section provides conclusions.

Description: New chairperson’s column discussing his goals for the Product Development Section.

Description: An interview with Jim Toole, lead researcher for SOA's pandemic research project. The project examines pandemic influenza and its implications to the life and health insurance industry.

Description: This is an article about debt protection and credit insurance as products. From Small Talk Newsletter, November 2005, Issue No. 25.

Description: Panelists discuss statutory valuation issues associated with life insurance premium guarantees. Topics include actuarial opinion and X-factor analysis, 2001 CSO and mitigation strategies such as product design, reinsurance and securitization, session 30OF of the 2004 Valuation Actuary Symposium.

Description: This article presents the author's views on how direct writers of term insurance should view and monitor their reinsurance.

Description: This session from the 2003 SOA Orlando Meeting focuses on WL and UL insurance products offered in the U.S. and Canada, market and regulatory differences and similarities, the comparison of product offerings and an overview of current issues in product development. From the Record of the Society of Actuaries, Volume 29, No. 3.

Description: Panelists at this session of the SOA 2003 Washington, DC Spring Meeting discuss how changes in interest rates affect the assets and liabilities of a life insurance company and what a company can do to prepare. This session examines historical trends in interest rates and how companies have reacted to both sudden and gradual changes.

Description: The panel at this session of the SOA 2003 Washington, DC Spring Meeting look at the product development process with a focus on improving the success rate for new products and process improvement strategies.

Description: This session of the SOA 2003 Washington, DC Spring Meeting discusses the emergence of the life settlement market. Panelists present an overview of the market, typical transactions, implications for life companies and longevity risk takers, and regulatory issues.

Description: Discusses the current activities of the Life Liquidity Risk Working Group of the NAIC.

Description: 1999 Valuation Actuary Symposium, Los Angeles. This session focused on how the industry has responded to the financial management challenges associated with Equity-Indexed products. Topics included: 1. Investment hedging and market volatility. 2. Product modeling. 3. Participation rate competition. 4. Product evolution. 5. GAAP for Derivatives - FAS 133.

Description: From session 63 PD at the Spring regional meeting of the Society of Actuaries held in Atlanta, Georgia, May 24-25, 1999, panelists discuss current issues including adoption status and proposals for various regulations critical to product development efforts. Impact of XXX on product design and reserves is also discussed. From the Record of the Society of Actuaries, Vol. 25, No. 1.

Description: From session 74PD at the Spring regional meeting of the Society of Actuaries held in Atlanta, Georgia, May 24-25, 1999. Panelists explore the features, uses, and market for buyers of survivorship life products.

Description: In session 51CS of the Maui I Spring Meeting the Panel describes what every actuary should know about mergers and acquisitions in the life and health insurance business. From the Record of the Society of Actuaries, Vol. 24, No. 1.

Description: Panelists at the SOA 1998 Maui I Spring Meeting discuss new regulations for sales illustrations and the various technical and operational challenges they present to actuaries.

Description: This session from the 1995 SOA Boston Meeting covers an update on the current status of the proposed new standard non-forfeiture law for life insurance. From the Record of the Society of Actuaries, Vol. 21, No. 4a.

Description: This session from the 1995 SOA Boston Meeting covers usage, sales methods, and design of COLI products and their many variations. Presenters will discuss market potential, distribution systems, risks, product features, pricing implications, and tax issues. From the Record of the Society of Actuaries, Vol. 21, No. 4b.

Description: This session from the 1995 SOA New Orleans Meeting addresses issues facing mutual companies concerning the ability to ensure profitable growth. Various strategies discussed include surplus notes, demutualization, merger, and sale/acquisition of blocks of business. From the Record of the Society of Actuaries, Vol. 21, No. 1.

Description: Editorial regarding the diverse forces affecting the life insurance industry.

Description: 1992 SOA Regional Meeting, Anaheim. This session provided an update of current topics relating to individual life insurance. Subjects included: 1. Whole life products with a focus on par products from the marketplace point of view. 2. Financial factors impacting whole life products. 3. Guideline XXX and its impact on level term products. 4. Variable life insurance.

Description: This session at the SOA 1990 Annual Meeting an overview of the European life insurance market with respect to products, distribution, pricing, regulation and taxation.

Description: This session discussion is about the insurance industry is unique in the form of the financial instrument offered to consumers. Products earn long-term interest rates yet generally guarantee cash out without loss of principal. From Record of the Society of Actuaries Vol. 15, No. 3A.

Description: This session discussion is about market developments, federal income tax outlook, investment strategy/crediting strategy, pricing considerations, valuation, nonforfeiture, and state filing considerations. Survivorship life also was discussed in the Q&A. From the 1987 Record of Society of Actuaries, Vol. 13, No. 4B.

Description: Panelists provide regulatory updates about risk classification [including AIDS application issues], valuation and nonforfeiture, and cost disclosure. From the 1987 Record of Society of Actuaries, Vol. 13, No. 2.

Description: This session from the 1984 SOA Toronto Meeting examines the current proposals, regulation and deregulation in the U.S. sector and Canada, The Baldwin-United problem and the implications for the life insurance framework in Canada. From Record of the Society of Actuaries Vol. 10. No. 4

Description: This session from the 1984 SOA Salt Lake City Meeting discusses the latest Exposure Draft of the Committee on Theory of Dividends and other Non-Guaranteed Elements in Life Insurance and Annuities and of other related developments in this area.

Description: This is a panel discussion session on dividends and non-guaranteed elements in individual life insurance and annuities.

Description: This panel discussion, which occurred at the October 1982 Society of Actuaries Annual Meeting in Washington D.C., presented information on the implementation of the 1980 amendments to the Standard Valuation Law. Topics included:1. Status of Enactment, 2. Guidelines For Interpretation, 3. Model Regulations including indeterminate premium plans, indexed plans and universal life., and 4. Computer Specifications for reserves and nonforfeiture values using the 1980 CSO Tables. From Record of Society of Actuaries, Vol. 8, No. 4.

Description: This session at the SOA 1982 Orlando Spring Meeting discusses insurance products dividend philosophy. Focus is on implications of AAA and CIA standards, equity among dividend classes, methods of investment income allocation, stock company issues, and treatment of federal income tax.

Description: This session from the 1981 SOA Spring Meeting focused on return on investment in a rate-regulated environment. Topics included current rate-regulated environments, current use of ROI, ROI in price setting and future rate regulation controls. From Record of Society of Actuaries, Vol. 7, No. 2.

Description: This session from the 1981 SOA Spring Meeting discusses how the insurance industry will fare under different economic conditions according to an economotric model by Data Resources - DRI. The session also reviews how to incorporate inflation into actuarial calculations and the prospects and possiblities regarding inflation. From Record of Society of Actuaries, Vol. 7, No. 2.

Description: This panel discussion takes an in depth look at SOA and Academy committee proposals on actuarial principles and practices with respect to setting dividends for participating insurance. Discussion centered on equity in distributing surplus and appropriate methods and assumptions.

Description: This 1980 session covers amendments to the SNL and SVL and the anticipated revision to the CSO Mortality Table. Questions discussed: 1. What changes can be expected in requirements in the1980's? 2. What changes in products design will likely emerge from these? 3. What will be the effect on future gross premium, cash value, and reserve levels? 4. Will these changes be compatible with all economic forecast scenarios? 5. Will these changes create a need for increased gross premium rates or for higher company surplus levels? 6. Should attention to solvency measures be increased? 7. Are the allowable valuation interest rates sufficiently liberal?

Description: This session from the April 1976 Spring Meeting in Washington D.C. is about Variable Life Insurance, Section 79 Products, Policy Loan Interest Rates and Term Insurance.

Description: The following topics were discussed at concurrent sessions: 1. Personal Security in the 1970's- United States and Canada, 2. Adjusted earnings for life companies, 3. Pension funding, 4. What about these younger actuaries?, 5. Sources of statistical information for actuaries, 6. Variable life insurance, 7. Models and decision techniques, and 8. Role of the actuary in expense control. From Transactions of Society of Actuaries 1970, Vol 22, Pt. 2, No. 63.

Description: The following topics were discussed at concurrent sessions: 1. Pension benefit security bill, 2. Variable insurance products, 3. Trends in hospital and medical care utilization, 4. Insurance distribution and marketing systems, 5. Deferred and incentive compensation, 6. Annual Statement accounting, 7. Social Security and employee benefits in western Europe, 8. Individual medical expense insurance, 9. Reserves and related problems for variable annuities and cost-of-living benefits, 10. Topics for consulting actuaries, 11. Profit and other objectives in group operations, and 12. Life insurance operations overseas- problems and opportunities. From Transactions of Society of Actuaries, 1969 Vol. 21 Pt. 1 No. 61.

Description: This paper examines the development of inflation and the dilemma the life insurance business faces. From Transactions of Society of Actuaries 1958, Vol. 10, No. 28.