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: There are two main equity release plans for retirement financing: reverse mortgage plan and home reversion plan. Both plans entitle the home owners to release cash from their properties without leaving their home. In the lease buyback scheme (LBS) recently introduced rin Singapore, the home owner sells the tail-end of the property lease to the government in exchange for a cash payment upfront. Unlike the two main equity release plans, the LBS only allows the owner to stay in the property during the front part of the lease but not for life. In this paper, we propose a hybrid home equity release plan that incorporates both features of the home reversion plan and the LBS. We provide an actuarial framework to analyse the pricing of the hybrid plan. Some numerical illustrations are presented to show the actuarial values of the plan under different parameter choices, such as lease period and portion of property values sold. The hybrid plan provides enhanced flexibility to plan takers to meet their retirement needs.

Description: A brief introduction to a new SOA research on liability-driven investment benchmark model.

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: The speaker will share his insights into the hedging challenges faced by FIA and VA business in the current market environment.

Description: A brief introduction to a new SOA research on liability-driven investment benchmark model.

Description: The speakers will share the international experience in the annuity market, discuss the annuity puzzle and the influencing factors of annuity supply and demand, and express their views on the annuity market trend under the aging and longevity trend of China's population and longevity risk management of annuity products.

Description: Many retirement actuaries have experience developing, implementing, and monitoring Liability Driven Investing (LDI) strategies for plan sponsors. These strategies typically involve modifying a plan’s investment strategy to remove a significant portion of the investment and interest rate risk now or at some point in the future when specific triggers are met. The tactics often involve the use of fixed income assets to cash flow and/or duration match the liabilities. In the spirit of helping actuaries expand their roles in an evolving defined contribution world, this article explores the application of LDI and derisking strategies within defined contribution and individual retirement accounts. The economic theory behind this approach is called the lifecycle hypothesis, or lifecycle finance. The benefits of the lifecycle finance method are that it provides a safe approach to save for retirement and a secure source of floor income during retirement. Similar to pension plans, each individual has his or her own idiosyncratic needs, wants, and risks that should be considered. Actuaries are uniquely situated to help defined contribution plan sponsors, individuals, and even themselves implement the lifecycle finance approach by developing and distributing tools and methods that focus on income (rather than wealth), LDI strategies, and personalization.

Description: This research, based on data from regulatory filings in Ontario, with supplementary information from British Columbia and the United States, examines funding valuation discount rates.

Description: This article, another in the popular series devoted to tax basics, provides an overview of how the Employee Retirement Income Security Act of 1974 (ERISA), the law governing employment-based retirement and health plans, impacts the use of annuities in pension and 401(k) plans. The article explains which types of plans are subject to ERISA, and which are not; why the concept of "plan assets" is critical; what duties an insurance company or distributor might take on when an annuity is placed with a retirement plan; and finally what disclosures may be required. The article also includes a brief introduction to terminal funding annuities. This article is intended for those with no prior experience in ERISA. Because the vast majority of retirement assets are saved originally in employment based plans like pension and 401(k) plans, understanding the basics of ERISA is important for anyone who will have a career in annuities and life insurance.