Description: One of the most fundamental concepts in actuarial practice is the time value of money. For any work in which future cash flows are allowed for, such as reserving or pricing, it is natural to discount to present values so that an appropriate amount of money can be set aside today, allowing for future investment returns. This article discusses yield curve extrapolation methods along with the benefits and drawbacks of these methods.

Description: Findings from EY Insurance Risk Management Team's 2016 (annual) Insurance Chief Risk Officer Survey.

Description: Risk based pricing addresses some of the shortcomings of traditional pricing methods by providing a framework for understanding the tradeoffs between shareholder risks and rewards using a robust, transparent and objective economic methodology that is consistent across products.

Description: This article demonstrates and explains the differences between the current Canadian and U.S. capital regimes on life insurance companies. The concept and framework of regulatory capital is first introduced and Canadian regulation capital requirements—minimum continuing capital and surplus requirements (MCCSR) and U.S. regulation capital-risk based capital (RBC)—is explained and compared.

Description: List of recent publications that may be of interest to readers of Risk Management newsletter.

Description: The IAA Risk Book provides a set of high quality reference materials for use in managing the uncertainty of insurer risks.

Description: How can actuaries innovate solutions to the challenges posed by policyholder behavior risks?

Description: This article presents the results of the survey interviews, examining best practices as well as those areas that still remain challenging.

Description: One of the most fundamental concepts in actuarial practice is the time value of money. For any work in which future cash flows are allowed for, such as reserving or pricing, it is natural to discount to present values so that an appropriate amount of money can be set aside today, allowing for future investment returns. This article discusses yield curve extrapolation methods along with the benefits and drawbacks of these methods.

Description: The article explores the possibility of using the emerging technology for life insurers to build a monitor system for better risk and profitability management.