Description: What relevance does ESG and Sustainability have for actuaries? In the Life and Health space, we know that large protection gaps persist, reminding us of the challenges reinsurers and insurers face in reaching underserved customers who are often lower-income, less healthy, and more likely to suffer impacts of climate change. The Sustainable Actuary is focused on solving these challenges to make life and health insurance more inclusive. This ImpACTful panel will dive into these challenges and provide practical case studies of more inclusive insurance products that balance considerations for people, the planet, and profit. Listeners will walk away with ideas for how to use their actuarial expertise to enable greater social impact and sustainable business value.

Description: There are many underwriting issues being discussed in states that challenge how information is used in the underwriting process. Learn more about a variety of rules and regulations, including Colorado's proposed regulation requiring a governance and risk management framework for life insurance carriers' use of external consumer data and information sources, as well as algorithms and predictive models using such data. Recent proposals are more far-reaching than existing requirements in states that have put up guardrails for the use of new data sets and algorithms, especially for underwriting. Listen in as experts discuss the potential issues and implications of this and other proposed regulations.

Description: Much has been published about the increased financial statement volatility under U.S. GAAP Long Duration Targeted Improvements (LDTI). Discover more about tools and techniques that actuaries and other financial reporting professionals can use to reduce volatility risk and understand the relationships between certain risks and volatility. By attending the session, you will learn to identify sources of financial statement volatility under LDTI and methods to manage or reduce the volatility.

Description: Measuring the interplay between climate risk and morbidity and mortality is complex and often requires a multidisciplined team approach to meeting objectives. In this session, presenters discuss their journey and the twists and turns encountered in examining the link between wildfires, air quality, pollution, and morbidity and mortality implications. In addition to sharing their insights about the process, presenters will provide results from their, such as: - Mortality and morbidity risk trends influenced by climate change, wildfires, and air quality issues - Regional, risk class, socioeconomic, and temporal variations in these trends - Projections based on the observed trends and their implications for the future - The impacts on specific causes of morbidity and mortality, such as respiratory disease, cancer, and cardiovascular disease By attending this session, you will gain a better understanding of the following: - Implications of the study for life and health insurers - Key risk factors for individuals affected by air quality issues, the drivers for morbidity and mortality impact, and differences between the general and insured population - Process, data, models, and considerations needed for examining the mortality and morbidity consequences of climate risks like wildfires

Description: Welcome to the appellate court. We’ve seen some scare in mass media on climate-linked mortality, but not sure what to make of that in our actuarial practice. Both data and research is quickly evolving around climate change’s impact globally and to US mortality. We’ll share a few tidbits from recent actuarial research on wildfires and air pollution in particular. At the same time, there are still many unknowns on the long-term effects, and this phase of understanding is ripe for calling on a diverse group of experts. We bring expert witnesses from different professions to the actuarial stand to answer whether climate change’s impacts from heat wildfire-induced air pollution to mental health is a credible and material threat to insured mortality. The audience should come ready to judge the arguments presented.

Description: This panel will take a holistic deep dive on the intersection of pending regulatory, actuarial, and technical developments in artificial intelligence (AI). Panelists will explore how AI and the diverse and evolving regulatory landscape surrounding this technology will impact actuaries' day-to-day jobs in managing risk, and what the (re)insurance industry is doing to leverage AI to streamline internal processes and simplify underwriting.

Description: This session will showcase how from an actuarial perspective IFRS17 has its roots in market consistent valuations. It will also show how International Financial Reporting Standard (IFRS) 17 is rooted in probability-weighted stochastic scenarios-same as fair valuation, and how initial recognition sets the stage, as in the pricing basis and report, for actual experience to emerge as in the subsequent recognition. A detailed model will be given for a simple annual premium non-par endowment and actual numbers given and explained. The stochastic model will explain in detail the key reserve items in IFRS 17 including: - Liability for remaining coverage (LRC) - Risk Adjustment (RA) - Contractual Service Margin (CSM) And it will explain their interactions with one another. A discussion will be held regarding universal life policies with simple interest guarantees. And how these guarantees merit a valuation similar to Lookback options because of their path-dependent nature.

Description: Recently, life insurers have seen a lot of change in their business model. Whether it be new accounting rules (e.g., long-duration targeted improvements [LDTI]) or new capital charges (e.g., structured equity tranche), companies are being forced to reconsider how they invest their assets. Today's session will help attendees understand how companies are using modelling software to help understand the impact of these changes on both their existing portfolio and potential changes that these new regulations may lead to. By attending, attendees will get a better understanding of: - How life insurers' asset allocation decisions are different than other financial companies (e.g., banks, pension funds, P&C companies) - How these changes may impact the risk vs. reward tradeoffs that life insurers' face - How these companies can use modelling software to help evaluate these potential impacts

Description: The session will use a case study to discuss some of the nuances and general considerations for an MRB, FAS 133 and VOBA balances for a business combination for an fixed index annuity (FIA) contract. The case study will discuss some MRB fair value considerations and followed by FAS 133 fair value techniques.

Description: At the end of December 2020, Congress enacted the Consolidated Appropriates Act, 2021, which included revisions to Section 7702. Effective for policies issued after December 31, 2020, the fixed 4% and 6% minimum annual effective rates under these tests were changed to refer to a market-based rate called the “insurance interest rate”. For contracts issued in 2021, the insurance rate was set to 2% - defined as the lower of the Section 7702 applicable federal interest rate based on the 60-month period ending December 2019 (2%) and the Section 7702 valuation interest rate in effect for 2020 (3.5%). This reduction in the rates used for compliance testing required significant product, operational, and technology changes for companies to reach product compliance. After 2021, the insurance interest rate is redetermined annually with a minimum change floor.