Description: Managed strategies as underlying investments in VA/FIA products have seen spectacular growth since the financial crisis. The speakers of these sessions will share their views on the development of this market and what is expected to unfold over the next 12 months in regard to the next generation of products and fund-based strategies.

Description: Presented at May 1996 Spring Meeting. This teaching session covers course F-585 in the exam materials, which is intended to provide background for the actuary who aspires to become the chief financial officer of a financial institution. It addresses raising capital and financial management.

Description: Presenters in session 147PD of the New York Annual Meeting discuss the new profession of financial engineering and how it relates to what actuaries do. From the Record of the Society of Actuaries, Vol. 24, No. 3.

Description: Annuities are presenting ever-greater risks for the direct writers: • Variable annuities with guaranteed minimum and enhanced death benefits and income benefits • Fixed annuities with multi-year rate guarantees are capital intensive • In-force structured settlements have asset portfolios with declining investment yields • The impact to the payout annuity market from lengthening life expectancies From the Record of the Society of Actuaries, Volume 27, No. 3, Session 146 PD of the New Orleans Annual Meeting

Description: This panel discussion session focused on the practical applications of risk theory.

Description: The academy generator is widely applied in actuarial practice. Initially confined to regulatory reserving, companies are increasingly using the AAA/SOA generator over an ever widening range of applications testing the limits of the academy generator's intended function. The session will give a brief overview of the academy generator and the asset classes it can be used to model. It will also analyze the statistical properties of the academy scenarios and discuss the scenarios relative to standard validation criterion. Some of the challenges that actuaries face in using this framework will be reviewed and options for addressing these challenges will be offered.

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: Insurance is a technically demanding, risk-based, capital intensive business. It is therefore not surprising that the industry is fertile ground for the development of technical models used to measure and price risk and manage capital. This session presents the forces which have significantly influenced the evolution of risk and capital management techniques and organization in the insurance industry, including regulatory changes, financial market instability, enlightened self-interest and ultimately a focus on shareholder value creation. Combining over 20 years in the industry in risk and finance roles with a rigorous academic approach, the presenter will provide insights into the most important business questions which insurers face today and the technical tools and frameworks used to answer them.

Description: One important lesson learnt from the recent financial crisis was that overreliance on financial models could lead to unforeseen and harmful consequences. Model risk management (MRM) is becoming a core and mandatory component in enterprise risk management for many financial institutions, especially Fed/OCC CCAR-compliant firms. In recent years, insurance companies are also being required to have model risk management programs by Solvency II, ORSA and other supervisory guidance. MRM is not just model validation. It consists of governance and policies regarding a model's life cycle including data, model development, model test and implementation, model validation, model monitoring and documentation. It also provides guidelines and standards for risk assessment and model inventory management. The presenters will discuss current and best practice MRM, approach for model validation and auditing, as well as topics for technical issues such as types of model risks. It will also discuss the differences between Fed/OCC standards and Solvency II standards. At the conclusion of the session, attendees will be able to: Describe best practice in model risk management; Explain requirements and standards; and Develop model validation procedure.

Description: This panel of session 3PD of the Washington Annual Meeting discusses a range of topics which fall under a new professional label of financial engineer, and how this role relates to the role of the actuary. From the Record of the Society of Actuaries, Vol. 23, No. 3.