Description: Risk adjustment is needed under IFRS 17 to reflect the compensation that a company requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk. Companies are also required to disclose the method and confidence level used for the calculation of the RA. However, IFRS 17 doesn’t specify a method and a confidence level, nor does it provide a list of specific risks that are considered to be non-financial risk. Companies need to define them based on their own preferences or existing practices. This article will introduce available approaches and discuss the confidence level approach with potential consideration stemming from industry preferences and illustrative examples.

Description: The article provides an update on the 2019 ERM Symposium with regard to date, location and content (General Sessions and Concurrent Sessions).

Description: A critical step in valuing a company for the purpose of financial reporting is the computation of the market value of economic surplus (MVES). This article provides a novel approach to the valuation of MVES that is stable and reasonably immune to “market noise.” Current approaches to the calculation of economic surplus of an insurance company generally define such surplus as the market value of the assets (MVA) supporting the liabilities less the market value of liabilities (MVL). While MVA is observable in the market, MVL is typically computed directly, without regard to the underlying supporting assets. Subtracting MVL from any value of assets that changes with market movements results in an unstable surplus. Consequently, a surplus that is not fully reflective of market sentiment has been rejected by many. This same approach is further used in the calculation of market consistent embedded value (MCEV) when a balance sheet approach is used .

Description: This article discusses the Own Risk and Solvency Assessment ORSA Guideline that is being developed by the NAIC Group Solvency Issues working group as part of the Solvency Modernization Initatitve SMI. It looks at the purpose of the ORSA, the three sections of the NAIC ORSA and issues with current U.S. ORSA draft.

Description: The Chairperson of the section talks about how members can participate and make a difference in the section.

Description: In this article, the author discusses the need to create a systemic risk regulator.

Description: Managed strategies as underlying investments in VA/FIA products have seen spectacular growth since the financial crisis. The speakers of these sessions will share their views on the development of this market and what is expected to unfold over the next 12 months in regard to the next generation of products and fund-based strategies.

Description: Panelists discuss the importance of credit-worthiness to the customer of an insurance company, a brief history and description of the Standard & Poor's and Moody's rating systems, the efforts an insurance company goes through in obtaining ratings by outside agencies, the efforts required to maintain the ratings, and the importance of the ratings to the insurance company. From the 1987 Record of Society of Actuaries Vol. 13, No. 3.

Description: In this session 36OF of the New York Annual Meeting panelists discuss and compare the risk management practices used by insurers and by banks. From the Record of the Society of Actuaries, Vol. 24, No. 3.

Description: Presenter discusses some techniques for minimizing and controlling the damage to defined-benefit pension surpluses caused by market forces. From the Record of the Society of Actuaries, Vol. 25, No. 2.