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: 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: 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: 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: 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: 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: 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.