Description: The industry sees extreme value in predictive modeling and its ability to help us meet customer demands and remain profitable, but do customers and regulators look at this as a favorable addition to our process? Hear from a dynamic panel of industry experts who will tackle a variety of issues and questions from the state of the regulatory environment to the responsibilities of the carrier.

Description: As accelerated underwriting continues to evolve, it is a delicate balance to ensure these programs are managed effectively for both short- and long-term results. And there's debate about whether these programs are getting too aggressive. Join panelists as they share their viewpoints on the state of accelerated underwriting, the data sources, models, tools and techniques commonly used, how the landscape is destined to change with more dynamic approaches in underwriting, and how best to monitor these programs, and the impacts of these programs to carriers and the industry as a whole.

Description: The old adage 'insurance is sold not bought' has been used to dismiss digital insurance and support the old agent model of distribution. However, modern distribution systems address this with personalization. This is not simply a customized application form based on age or gender. Personalization is much more dynamic and happens in real-time. It's about tailoring the end-to-end experience to meet the needs and expectations of the specific applicant. The core tools to achieve this are AI learning and nudges from behavioral science.

Description: New digital data known as alternative data is everywhere. Our industry has seen the financial, and hi-tech industries leverage new digital data to expand their key offerings and core services. From the lens of the global life and health industry, new digital data is still searching to be further understood. Risk assessment is a current focus area for using alternative data. A key question is even though risk assessment has always been data-driven, can it now move to the next level with the arrival of this alternative data. Can we use alternative data to make the risk assessment process quicker, cheaper, or faster thereby driving more sales and better conversion rates. It is an exciting time! With the increased adoption of health and well-being apps, data such as physical activity, nutrition, sleep, and mental wellness is now readily available. Expanded data such as digital biomarkers, IoT data, electronic health records and many more can also be accessed. However, how to effectively implement alternative data remains a challenge across the industry. We firmly believe it is, and will continue to be, imperative to take a structured approach to alternative data through a set of key considerations and a framework of principles.

Description: Future mortality improvement has been a common assumption in life insurance and annuity pricing and forecasting for many years. However, experience over the last decade suggests this might be an assumption that merits reconsideration in the United States. This article will take a closer look at factors that impact mortality improvement trends and discuss why insurers may want to reevaluate product designs to better manage the associated mortality risk. We then introduce a product idea with this in mind, where premiums are based on a life expectancy index and insurers share the risk (and opportunity) or mortality improvement with policyholders.

Description: With long duration targeted improvements in the U.S., and IFRS 17 in other countries, the insurance industry is currently undergoing the adoption of two of the most significant accounting changes in recent history. While the scale of these specific events are infrequent, change is the norm in the world of insurance and life of an actuary. We live in a dynamic environment that will continue to bring challenges in how companies make decisions in order maximize their value and return on capital. Capital management requires an ability for insurance companies to take corporate actions and understand the impact this will have on both the current and future available capital. Being able to make optimal decisions when the goal posts are subject to frequent and material shifts in accounting regulation is a difficult process. It requires holistic consideration of all tools available to manage capital and how KPIs can shift in their measurement under new regimes. By attending the session, you will: Discuss the challenges that companies have in managing capital in an ever evolving environment, what steps they have taken in managing the current scope of accounting change, and how they can be prepared for adjustments in the future.

Description: An overview of how the VM-31 requirements for documenting PBR approaches and assumptions can/should reflect the Actuarial Standard of Practice on Modeling, ASOP No. 56

Description: A discussion on technology improvements in establishing compliance with sections 7702 and 7702A. The Internal Revenue Code defines life insurance using actuarial tests that limit the investment in a life insurance contract as compared to the death benefit. Inadvertant failures of the actuarial tests can be uncovered by testing in order to enable remediation.

Description: For over a decade, life insurers have been challenged by a low interest rate environment, making it difficult to find investments with adequate yield, manage corporate spreads, and offer competitive products to consumers. While interest rates are still low compared to the early 2000’s, volatility in rates over the past year, during which the 10-year U.S. Treasury rate has increased by nearly 100 basis points, could indicate a longer-term trend of rising rates. What would a rising rate environment imply for life insurance writers? Insurers able to react to interest rate changes with agility can remain relevant in an evolving economy, protecting themselves and their policyholders. This article addresses risks and considerations faced by insurers with respect to in-force retention, pricing and product mix, and reinsurance and mergers & acquisitions.

Description: This article is the final installment of our three-part series on economic scenario generators (“ESGs”). Part I and II were published in the November 2019 and August 2020 issues of The Modeling Platform. Part III contextualizes the framework for selecting, building, and validating ESGs and focuses on the Academy Interest Rate Generator (“AIRG”), the most commonly used real-world ESG for US actuaries

Description: An interview with Jim Toole, lead researcher for SOA's pandemic research project. The project examines pandemic influenza and its implications to the life and health insurance industry.