Description: The U.S. life insurance industry has been increasing its exposure to complex assets, either directly as investors or via offshore reinsurance (e.g., Bermuda). In order to address regulatory concerns about such investments and reinsurance arrangements, the NAIC has begun multiple initiatives to improve disclosure and strengthen regulatory requirements, and the Bermuda Monetary Authority is also strengthening its requirements. Hear a summary of these initiatives, and get an update on the latest developments at the NAIC and at the Academy on these topics.

Description: The Survey of Emerging Risks has been successfully conducted in North America for 15 years, which provides a consistent report by tracking the opinions of risk managers on the emerging topics beyond the current business cycle with strategic plans over decades. For the first time the survey is also being specifically introduced in China and Greater Asia, with the aim of surveying the actuarial and risk management professionals' opinions on emerging risks in the local market. In relation to the Society of Actuaries, Greater Asia is defined as markets that participate in our Greater Asia Committee. These are additional areas outside of mainland China that include markets such as Hong Kong, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. The survey is sponsored by the Society of Actuaries (SOA) Research Institute and comprises both quantitative and qualitative questions in English and Chinese (Simplified). With a wide range of response options and allowing for anonymous comments, the survey results serve as a platform to share the risk views of local actuaries and risk managers in China and Greater Asia.

Description: The Casualty Actuarial Society, Canadian Institute of Actuaries, and the Society of Actuaries' Joint Risk Management Section and the Joint Risk Management Research Committee are pleased to make available a new report on the application of ERM. Authored by Bonnie-Jeanne MacDonald, Sim Segal, Michael Wolfson and Heidi Walsh, the report provides a novel demonstration on how ERM can be applied to serve the Canadian public by informing decision makers on the risks facing the current and future delivery of long-term care.

Description: This research report examines readers to Insurance-linked securities (ILSs) emphasizing catastrophe bonds (CAT) and industry loss warranties (ILWs).

Description: This research report summarizes methodologies used for yield curve extrapolation to value liability cash flows that extend beyond the maximum observavble portion of the yield curve.

Description: The Federal funds rate increased by 4.25% in 2022 with further increases in 2023, which have already resulted in a liquidity crisis for a few banks. As the rapid increase of the interest rates pushed the new money rates above the yields of many life insurers’ investment portfolios, insurance companies are facing a dilemma between compressed margins from peer pressure and the concern with liquidity shortfalls and realized capital losses should mass surrenders happen. This paper discussed main emerging risks under rising interest rate environment, and several ways to mitigate these risks.

Description: Joint Risk Management Section chairperson's corner, June 2023

Description: An introductory article describing how Bayesian statistics has evolved over the past 20 years and why it offers the actuarial discipline powerful tools to better understand and manage risk. Compared with traditional (frequentist) and black-box (machine learning) approaches, Bayesian analysis provides explainable models focused on distributions of estimates instad of simply point estimates.

Description: This session aims to put everything together and explore progress on company’s ERM process to incorporate climate risks and enterprises’ attempt to provide sustainability information to audiences in need. We will discuss the latest development in international standard on sustainability disclosure. We will diagnose the challenges on implementation and effort to resolve them. We will compare the requirements and latest development across different jurisdictions and possible cross learning among them. To conclude, we will land on what opportunities present to the actuarial community! At the end of this session, participants will be able to: • Discover requirements on sustainability reporting standards across different jurisdictions • Appreciate the challenges and progress to integrate climate risks in company’s ERM approaches • Comprehend actuaries’ opportunities and responsibilities to contribute

Description: Regular update provided by the Chair of the Joint Risk Management Section on initiatives put forth by the section council for the current year.