Description: This session is about financial rating systems: The processes, performance, improvement, and the role and impact of risk-based capital requirements.

Description: Discussion of solvency problems and the actuary's role in addressing them in the life insurance industry.

Description: ongoing discussion of the proper interest rate to use in discounting liability cash flows to reflect credit risk of the insurer in a fair value accounting system

Description: We analyze how volatility management techniques in VAs affected policyholders and insurance companies

Description: This paper focuses on the role of holism in enterprise risk management ERM. The performance measure known as market consistent embedded value is discounted for being overly reductionistic. The concept of an economic capital charge or credit is seen here as a potential bridge from the reductionistic to the holistic approach. It shows some promise for achieving holism, but falls short.

Description: The author constructed the efficient frontier of new business sales by modeling the embedded value and economic capital against a universe of possible growth rates of the three lines of business in a typical three-year planning horizon. The ERM function can use the efficient frontier of new business to provide a more rigorous analysis of the impact of growth rates on the firm’s overall capital efficiency and value creation, hence forming a feedback loop with the businesses in the planning process to optimize the growth strategy.

Description: Contemporary ERM has moved from an event-based view of risk to a hierarchical, systems-based approach. In order to operationalize such an approach, a methodology is proposed in this paper that draws on phylogenetic approaches that have been successfully developed for biological evolution. The technique and process provide an insight into the lineage, pace and impact of external conditions on the evolution of risks. They also provide a unique and rational classification of risk in an enterprise that can be used to optimize risk management resources. An example of a fictitious insurance company is used to illustrate the approach. Presented at 2010 Enterprise Risk Management Symposium, Society of Actuaries, April 12-15, 2010.

Description: The paper argues that Risks Evaluation at its core is a psychological process that can lead to the special type of chaos described in modern Chaos Theory. It will argue that quantification and scientific modeling does not exempt risk assessment from the potential for deep biases. Presented at 2010 Enterprise Risk Management Symposium, Society of Actuaries, April 12-15, 2010.

Description: This case study is intended to educate insurance professionals on historical insurer impairments and insolvencies and possible future prevention indicators.

Description: This paper suggests that Asian financial institution openly exhibit problems and attitudes that in other regions may be buried under the surface. Therefore, becoming familiar with Asian instituions can help risk professionals unearth problems that otherwise might remain hidden in our own territoriies. From 2007 Enterprise Risk Management Symposium, M-AS07-1.