Potential Impact of Pandemic Influenza on the U.S. Life Insurance Industry Reportthe severe scenario is particularly important to direct writers, as reinsurer capitalization may be stressed ... three primary areas: pandemic scenario assumptions, life insurance industry assumptions (direct writers) ...
Description: Attempts to Quantify Potential Impact of Pandemic Influenza on the U.S. Life Insurance IndustryHide
- Authors: Jim Toole
- Date: May 2007
- Competency: External Forces & Industry Knowledge; External Forces & Industry Knowledge>External forces and business performance
- Topics: Demography>Mortality - Demography; Economics>Health economics; Finance & Investments>Economic value; Life Insurance>Claims - Life Insurance
Mitigating Volatility of Retiree Health Valuation ResultsMitigating Volatility of Retiree Health Valuation Results Exploration of sources of volatility ... value; Embedded value; Financial economics; Health care costs; Health economics; Market value of liabilities; ...
Description: Exploration of sources of volatility in retiree health valuations, noting how volatility arises and might be mitigated, with discussion of valuation parameters more problematic for retiree health benefits than for pensions. Three significant influences on retiree health valuation volatility are covered-- changes in benefit level, fluctuations in cost level, and alterations in eligibility for, or duration of, benefit – and attention focused on the last two. Specific conclusions result in recommendations, which are supported by practical examples contrasting volatile measurement results with those likely from the recommended practices. Theoretical discussion includes health claim variation, health trend usage, financial economics, option pricing, discount rates, and deterministic vs. stochastic modeling.Hide
- Authors: Jeffrey Petertil, Justin Petertil
- Date: Sep 2012
- Competency: External Forces & Industry Knowledge>Actuarial theory in business context; Professional Values>Practice expertise; Professional Values>Public interest representation; Technical Skills & Analytical Problem Solving>Innovative solutions; Technical Skills & Analytical Problem Solving>Process and technique refinement
- Topics: Economics>Financial economics; Finance & Investments>Economic value; Health & Disability>Health insurance; Modeling & Statistical Methods>Deterministic models; Pensions & Retirement>Assumptions and methods; Pensions & Retirement>Retiree medical
Retirement Benefits, Economics and Accounting: Moral Hazard and Frail Benefit Designswhether implicit, explicit or combined. This is a direct application of Principle 1. Financial accounting ... decrease in direct pay. If a firm chose to commit more (or less) to benefits without adjusting direct pay, ...
Description: This paper uses economic principles to analyze alternative recognition schemes for end-of-period retirement plan liabilities the candidates, using U.S. nomenclature, are the vested benefit obligation VBO, the accumulated benefit obligation ABO and the projected benefit obligation PBO.Hide
- Authors: Jeremy Gold
- Date: Oct 2004
- Competency: External Forces & Industry Knowledge
- Topics: Economics; Finance & Investments>Economic value; Financial Reporting & Accounting>Financial Accounting Standards Board [FASB]; Pensions & Retirement>Assumptions and methods
Investment Actuary Symposium Fair Valuation of Liabilities: Theoretical ConsiderationsLong-Term Care News September 2010 – Issue 26 6 | SEPTEMBER 2010 | Long-Term Care News ... pricing method has also been referred to as the “direct method,” since liability cash flow is discounted ...
Description: A summary of a scientific paper written to address the differences and similarities between the option pricing method now more commonly known as fair valuation and the actuarial appraisal method.Hide
- Authors: Luke Girard
- Date: Sep 2010
- Competency: Technical Skills & Analytical Problem Solving
- Publication Name: Long-Term Care News
- Topics: Finance & Investments>Economic value; Financial Reporting & Accounting>Fair value accounting
Embedded Value: Practice and TheoryEurope, Canada, and other countries, and often the primary measuring stick, of financial performance for ... reporting. Although the CFO Forum remains the primary source of EV principles worldwide, additional ...
Description: This paper introduces basic embedded value EV principles, concepts and formulas that will be especially valuable to the beginning students of EV.Hide
- Authors: Robert Frasca, Kenneth LaSorella
- Date: Mar 2009
- Competency: Technical Skills & Analytical Problem Solving>Problem analysis and definition
- Publication Name: Actuarial Practice Forum
- Topics: Finance & Investments>Capital management - Finance & Investments; Finance & Investments>Economic value
A novel approach to valuing an insurance company’s economic surplusavoids the many complications associated with direct computation, which typically involves discounting ... without the many complications associated with a direct computation of MVL, which typically involves discounting ...
Description: This paper provides a novel approach to the valuation of the market value of economic surplus that is stable and immune from “market noise”.Hide
- Authors: Dariush Akhtari
- Date: Aug 2019
- Competency: Technical Skills & Analytical Problem Solving>Incorporate risk management
- Topics: Enterprise Risk Management>Capital management - ERM; Finance & Investments>Asset liability management; Finance & Investments>Economic capital; Finance & Investments>Economic value
Valuing a Life Insurance Companyanalysis are real estate, large mortgage loans, and direct placements. Determining the value of the home office ... business by agency and type of producer is needed. A primary question is the permanency of the agency force ...
Description: Presentation of some of the factors to be considered, and approaches which might be employed, in valuing a life insurance company.Hide
- Authors: Melvin L Gold, Robert C Tookey
- Date: Apr 1962
- Competency: External Forces & Industry Knowledge>Actuarial theory in business context; Strategic Insight and Integration; Technical Skills & Analytical Problem Solving>Process and technique refinement
- Publication Name: Transactions of the SOA
- Topics: Finance & Investments; Finance & Investments>Economic value; Financial Reporting & Accounting>Statutory accounting
Sustainable ERMinformation management, alignment of interest, etc. Direct and officer liability and other commercial liability ... general public. It is the byproduct of taking care of other stakeholders. SERM goes beyond traditional ...
Description: The author discusses how sustainable enterprise risk management (SERM) is valuable for insurance companies and how actuaries can contribute to its development.Hide
- Authors: Fan Yang
- Date: Jan 2015
- Competency: Professional Values>Public interest representation; Strategic Insight and Integration>Effective decision-making; Technical Skills & Analytical Problem Solving>Incorporate risk management
- Publication Name: The Actuary Magazine
- Topics: Finance & Investments>Economic value; Pensions & Retirement>Risk management
Actuarial Methods for Valuing Illiquid Assetsthe fair value hierarchy. Level 1 inputs are direct (unadjusted) quoted prices from an active market ... market impact costs; delay and search costs; direct transaction costs. The cost of illiquidity constitutes ...
Description: The valuation of illiquid assets is a vast topic, which is very much in a state of development. Based on comments made by investment professionals during the preparation of the proposal, this is a very challenging area of research. Generally, the investment industry will look with great interest on the outcome of this research. The research proposal was restricted in two ways. The literature review was focussed on the valuation of private placement debt PPD and real estate. The case study was limited to analyzing valuation methods with respect to PPD. Sponsored by CAS, CIA, SOA Joint Risk Management Section.Hide
- Authors: Application Administrator
- Date: Dec 2011
- Competency: External Forces & Industry Knowledge>Actuarial theory in business context
- Topics: Finance & Investments>Asset liability management; Finance & Investments>Economic value
Economic Measurement of Insurance Liabilities: The Risk and Capital Perspectivewriting the product, nor is there typically a direct relation between this margin and the risk premium ... NGAI supporters view the premium received as the primary or only indication of the appropriate risk margin ...
Description: Insurance company financial reporting and performance measurement are going through a significant transformation. Insurers are beginning to look at their business based on what many refer to as the “economic value framework.” Under this framework insurance companies determine the economic value of the capital invested in their business and the economic value of earnings to derive a risk-adjusted return on capital. Standard setters, primarily European insurance regulators through Solvency II and the International Accounting Standards Board through IFRS Phase II, propose adopting many of these concepts for solvency and performance reporting.Hide
- Authors: Larry Rubin, Randy Tillis, Michael J Lockerman, Xiaokai Shi
- Date: Mar 2009
- Competency: Technical Skills & Analytical Problem Solving>Problem analysis and definition; Technical Skills & Analytical Problem Solving>Process and technique refinement
- Publication Name: Actuarial Practice Forum
- Topics: Finance & Investments>Economic capital; Finance & Investments>Economic value; Financial Reporting & Accounting; Financial Reporting & Accounting>Fair value accounting