Description: The purpose of this article is to discuss potential issues and considerations that may be encountered with the implementation of VM 20. Crucial considerations include the modeling software used, validation effort, assumptions used, complexity of the process, documentation, and run time. A key takeaway is that an integrated modeling platform with solid automation and asset-liability capabilities is imperative for addressing the issues and considerations encountered.

Description: Target volatility, as an investment strategy, has been used by many funds not only as a way to smooth return but also as a way to manage risks of the VA guarantees. Contrary to existing research which favors volatility targeting over fixed allocation, this article shows that because of the existence of market jump risk, target volatility strategy does not necessarily offer an improved risk profile for VA writers. Further, target volatility coupled with leveraging can significantly increase tail risk for insurance companies.

Description: Constant Proportion Portfolio Insurance (CPPI) performance is assessed on realistic assumptions and dynamic strategies to mitigate the so-called ”gap risk”.

Description: This article gives an overview of the types of chronic illness acceleration riders that are now becoming prevalent in the US life insurance marketplace. The article discusses features that risk control measures that one may wish to consider when designing such an accleration rider.

Description: This article explores implications for the future of improving the application of existing underwriting techniques and and taking maximum advantage of new technologies.

Description: The sentinel effect in the underwriting process refers to the tendency for unhealthy individuals to apply for insurance coverage where testing is not performed. The article reports on evidence of the effect with respect to cocaine and tobacco use and HIV positive prevalence

Description: The article talks about market consistent pricing, how risk neutral pricing and real world pricing are not fundamentally different if used appropriately. And using that knowledge, a rather new concept called the risk-adjusted real world pricing, which is a method where a mixture of risk neutral and real world pricing to achieve a holistic view on pricing, will be introduced.

Description: Ways of closing the mortality protection gap, by leveraging some of the new technology, data and analytics to reduce the friction in the buying process.