Description: This article highlights some of the results from the Society of Actuaries SOA 2010 update to the 2005 Reflecting Risk in Pricing Survey. The survey focused on how companies are trying to price for and understand the risks inherent in the products they sell in various product lines—life and annuity, health, and property and casualty P&C insurance—and showed results for various countries of location and business focus.

Description: 2011 SOA Enterprise Risk Management Symposium, Chicago. This paper reviews a risk management theory that deals with correlated, non-normally distributed factors, and then applies risk management techniques to the U.S. steel industry using futures contract hedging.

Description: The objective of this paper is to explore the issues necessary to develop an integrated model of operational risk (OR) and financial risk (FR) within the framework of enterprise risk management (ERM). From 2007 Enterprise Risk Management Symposium, M-AS07-1.

Description: As one highly rated financial firm after another blows up, what is the right conclusion to draw about enterprise risk management ERM? Does the financial crisis of 2008-09 demonstrate its criticality, or does it bring the whole concept into disrepute?

Description: The ongoing financial meltdown has cast a shadow over the entire economy, and caused some to question whether the much-hyped movement of enterprise risk management ERM has failed. My answer is, yes, an overarching theme of the credit crisis is a failure of risk management.

Description: The insurance industry hinges on accurate actuarial assumptions. This session explores how insurers can leverage AI/machine learning (ML) to unlock greater accuracy and granularity in assumption setting, while effectively managing risks, implementing strong governance frameworks, and meeting validation expectations from regulators.

Description: The introduction and effective application of US GAAP LDTI have increased the scrutiny of those reviewing the updated financial results. That is because LDTI has resulted in significant changes in actuarial reserving and deferred acquisition cost (DAC) models for long-duration contracts, including significant changes to data, assumptions and required disclosures. In light of the changes, greater reliance has been put on companies’ model risk management (MRM) teams and model validations to assess the conceptual soundness and accuracy of their companies’ actuarial models and to assess that the underlying data and process utilized are suitable and appropriate. This article covers a brief background on model validation, walk through a sample LDTI-focused model validation framework/test plan, then provide insights on common LDTI-related validation observations based on the authors' prior validation experience.

Description: This is report summarizes the results of a Joint Risk Management Section sponsored study on negative interest rates and the insurance industry.

Description: Part 2 of a six-part series on the evolution of risk management continues with this article on dynamic financial analysis.

Description: Since the issuance of IFRS 17 in 2017, the global insurance accounting standard, insurers across the globe have been making huge investment in assessing the impact and implementing the new standard. In late 2018, FASB issued ASU 2018-12 that revises key elements of the U.S. GAAP measurement models and disclosure requirements for long-duration contracts issued by insurers (also called FASB Targeted Improvements). Both standards are becoming effective 1/1/2021 (though IFRS 17 may potentially be deferred by a year). U.S. insurers that have international parents or subsidiaries, and report under a multi-GAAP environment will likely have to adopt both standards. By now most insurers should have nearly completed impact assessment for IFRS 17, designed road map for or have started the implementation journey. With the new U.S. GAAP requirements becoming effective concurrently, it is important to embark on the implementation journey with both standards in mind, and maximize the synergy to achieve cost-saving and design efficiency. This session will briefly introduce the two standards with a conceptual comparison, along with a discussion on where efficiency and synergy can be achieved in a concurrent implementation.