Description: This presentation shares experience and ideas of both AIA Group and AIA China during implementation of the IFRS17 project and will discuss potential impact and outlooks in the domestic market from IFRS 17. This presentation includes a general overview of an IFRS17 implementation project, focusing on changes and requirements, as well as the resources cost of the main challenges and relative resources.

Description: Historically for coinsurance deals some appointed actuaries have only concerned themselves with the reinsurer counterparty risk and in certain cases have ignored 100% coinsurance business in their asset adequacy analyses (AAA). Recently there have been regulatory discussions about concerns relating to asset intensive reinsurance and how these deals may be exposing policyholders to additional risk. Presenters will discuss the recent draft APF 2024-3 and issue brief 'Asset-Intensive Reinsurance Ceded Offshore From U.S. Life Insurers (With Focus on Bermuda)', potential impact to AAA, and modeling considerations.

Description: June 2024, AG54 will begin for new RILA sales. This guidance requires companies to determine an interim value that is more aligned with the market value of the position on a daily basis. This discussion will talk through companies adoption of AG54, lessons learned, approaches and integration with the administration system. Additionally this session will discuss how AG54 impacts new product design, reserving and capital implications.

Description: This session will address the risk management, reserving and capital issues associated with index-linked annuities including financial reporting considerations for FIAs and RILAs, benefits of combining VA and RILA hedging and reserving under VM-21, current and future challenges with FIA reserving under VM-22, potential capital redundancy for FIAs, RILA interim values under AG 54, NAIC economic scenario reform, asset modeling, fund mapping and more!

Description: In several parts of the world, LDTI which had substantial changes to U.S. GAAP and also IFRS-17 have been implemented in the last two years. There have been learnings and also challenges for companies subject to these new financial reporting standards. These include enhancements to modeling, improvements in end-to-end processes, and development of robust management reporting and analysis frameworks.

Description: This PBA Implementation Guide provides verbal summaries and visual flow chart overviews of various VM-20 and PBA components and requirements, six Case Study Road Maps, and action items to bridge the gaps and implement PBA. During the Guide’s development these templates and exercises were vetted with more than 15 participants selected from a diverse group of companies.

Description: How does mortality experience impact earnings under the new GAAP financial framework? This article discusses how to isolate key components from financial models related to decrements, as well as how to handle the changes in the financial reporting landscape including: the aggregation of insurance policies into cohorts, dynamic reserving, and the limitations imposed by caps and floors. Looking at the components of earnings, such as the present value of benefits, expenses, and premiums, and how these elements interact is critical to form a comprehensive earnings story.

Description: This session will delve into the valuable lessons learned from recent accounting change implementation, covering both model and process optimization. Attendees will gain industry knowledge as we explore optimization decisions made by others, highlighting both successful strategies and areas for improvement. We will discuss key decision points throughout the entire actuarial process, including data manipulation, actuarial calculation engine, and post-model reporting.

Description: This article aims to delve into the rationale and calculation logic of the variable fee approach (VFA) which is applied to the insurance contracts with direct participation features under IFRS 17. In actual practice, the variable fee approach can be implemented in two methods, which are from fee income or total cash flows point of view. These two methods will achieve the same outcomes but are featured with different insights and varying degree of operational ease. Detailed roll-forward steps of contractual service margin (CSM) for these two methods are elaborated in the article, along with a numerical example by using a variable universal life product to help the readers comprehend the rationale behind the variable fee approach.

Description: Presents a step-by-step methodology for calculating confidence intervals for IBNR estimates derived using the Averaqe PMPM method. It is a companion article to the January 2023 Health Watch article presenting the Average PMPM method for generating point estimates of IBNR with zero claims runout.