Description: Regulatory change and increased focus on internal risk management are driving a renewed interest in model efficiency. In this session, we will review several new and existing tools, that show significant promise for advanced modeling of equity linked products. These include: • Clustering • Use of unique--and potentially a different number of--scenarios for each policy • Semi Monte Carlo (SMC) – this is a proprietary technique that is similar to a combination of Monte Carlo and numeric integration • Using a neural network approach to optimize some of the more complex and manual aspects of clustering and improve the fit of the clustered model • Combining SMC with the use of unique scenarios per policy

Description: There is no “industry standard” approach to managing the vega (volatility) risk inherent in Variable Annuity Guarantees, Fixed Indexed Annuities and other equity-linked obligations. In this session, we will introduce and analyze a range of reinsurance solutions, including full vega risk retention, full vega risk transfer and more sophisticated or custom structures that split the vega risk between the insurer and the reinsurer in various ways. We will also explore other approaches in bespoke risk coverage and show the impact of different assumptions on a generic “VA Guarantee Cost Estimate” that has been developed by Munich Re.

Description: In this session, a company will share its experience on managing risks underlying the equity-linked insurance guarantees and what lessons were learned over these years as it adapted its strategies to suit the current market environment.

Description: Summary of research project designed to document method to credit interest rates to account value based products. The investment year method (IYM) can theoretically align with investment strategy and be fair to policyholders. These products were designed in the 1980s with guaranteed nominal rates above what is currently accessible so most products credit the guaranteed rate. This paper documents how it could be resurrected during the next interest rate cycle.

Description: A contract owner selects a payout for his annuity using an AI/bot. The AI/bot presents various options with differences in payment and interacts with him in a simulated chat session. He decides on the form of payout. Compared to regular customer service the AI/bot was an improved experience with a call to action for the industry to build it.

Description: With freezing and termination of DB plans, there is a growing void in retirees' retirement planning that can best be solved by annuities. The presenters will discuss different ways that annuities can be used to provide retirement income in DC plans. They will also cover industry trends and the challenges of associated with adding annuities within DC plans

Description: The speakers will discuss the replication of long-term options, including a discussion of issues such as liquidity, transaction costs, slippage, impact of policyholder behavior, and machine learning algorithms to improve hedge effectiveness.

Description: An exploration of drivers, cohorts and dynamics for policyholder behavior for VA and FIA based on industry experience data, including changes in recent years and the emergence of long-term data in key areas. We will also discuss critical elements to developing a sustainable and coherent framework to translate this complex experience data into assumption models.

Description: 1994 SOA Meeting, San Francisco. This session is about joint ventures and private labeling for life, annuity and disability products. In a primary variation of private labeling, a manufacturer develops, underwrites, administers, and does the actuarial functions, but the client company markets the product. Other variations of joint ventures have different distributions of duties.

Description: The author proposes an annuity clearinghouse to encourage employers to offer annuity accumulation products in their defined contribution plans. This addresses the lack of portability that is associated with, and discourages the use of, defined contribution plans.