Description: In order for actuaries to play a valuable role in the realm of enterprise risk management ERM, they must provide value-added advice and quantitative analyses. In this paper, the authors use stochastic simulation technology to present a risk metric for defined benefit pension plans that provides improved measures of the plan’s solvency and provides a tool for pension plan managers to determine the value of risk mitigation activities.

Description: This article offers insights about the United Technologies Corporation lifetime income approach and information on the design, administration and acceptance.

Description: In this paper, we derive three important longevity Greeks on the basis of an extended version of the Lee-Carter model that incorporates stochastic volatility.

Description: To be financially "well" is unique to an individual. Following a hierarchy of needs is key, along with saving more than the talking heads tell you to.

Description: This paper defines health expectancy as that part of life expectancy where the person is expected to be healthy. It also breaks down the remainder of life expectancy into two unhealthy categories, one where assisted living will be necessary, and one where a skilled nursing facility will be necessary. These expectations are calculated for many combinations of age, other demographic characteristics, and current health issues.

Description: Current DC plans do an extremely poor job at managing investment and longevity risk for plan participants. This leads to suboptimal outcomes: retirement income is potentially too low, assets are subject to catastrophic losses and may even run out. Insurance solutions—most notably annuities—address some of these issues, but are expensive and not very much liked by consumers. This paper explores how Enhanced Risk Sharing Savings Accounts (“ERiSSA”), consisting of a combination of individual DC accounts with a collective risk sharing and return redistribution mechanism coupled with deferred annuities, might be able to strike a better overall balance for consumers.

Description: Technological innovations are disrupting traditional business models, improving products, and enhancing the user experience.

Description: In this paper, we derive three important longevity Greeks on the basis of an extended version of the Lee-Carter model that incorporates stochastic volatility.