Description: According to Oliver Wyman's 2023 Asset-Liability Management (ALM) survey, long-term care (LTC), universal life, and whole life insurance products have among the longest liability duration profiles, often with material asset-liability duration mismatches. Deploying an optimal strategic asset allocation (SAA) framework for these products is particularly challenging due to their: - Long-tail profile. Liability cashflows for long-duration insurance products often extend beyond the investment horizon of currently available assets (e.g., 30-year U.S. Treasuries) - Liquidity needs. Depending on the type and age of the insurance product, achieving your desired levels of projected liquidity becomes instrumental Solution: A robust liability-driven SAA framework with an emphasis on minimizing cashflow mismatch while considering a company's risk appetite and investment guidelines aims to reduce interest rate and liquidity risks. Case studies: LTC and life-focused case studies will provide insights into hypothetical SAA frameworks, including ways companies optimize their fixed-income assets. We will also explore techniques used to extend asset duration beyond a typical fixed-income portfolio, using derivatives and alternative assets.

Description: The NAIC continues to move ahead with the GOES (generator of economic scenarios) project for the transition to a new real-world economic scenario generator (ESG) prescribed for principle-based reserve and capital calculations. This session will provide a detailed project update from the regulator and practitioner perspective. An overview of model details and methods that have been decided, what remains to be determined, and the projected timeline for implementation will be discussed. Recent developments such as the industry field test and NAIC model office testing to assess the potential impact on reserves and capital will be discussed as will a review of the implementation of the stochastic exclusion ratio test (SERT). We will also discuss the components of the ESG model and the associated scenario sets the NAIC has exposed with respect to target and acceptance criteria. At the conclusion of this session, attendees will understand the current status of the NAIC GOES project and its projected timeline and will be able to describe the components of the model and how the model has been calibrated and validated. Attendees will also appreciate the remaining challenges in bringing the model to full implementation.

Description: Join a discussion on the evolution of asset and liability projection processes in the life insurance industry. Familiarize yourself with the broad set of inputs, stakeholders, and financial planning and analysis use cases. Notable areas of focus will include, but are not limited to, historical background, modeling needs, interactions between stakeholders, industry pain points, and a composite of an ideal future state informed by perspectives gleaned from leading companies within the industry.

Description: Market experts with backgrounds in economics, investments, and insurance will speak to macro trends and their impacts in the market. Panelists will explore topics such as “what are markets saying about the likelihood and severity of a recession?” and “how are interest rates impacting investment decisions and ALM?" You'll have the opportunity to join the discussion by asking questions throughout the presentation.

Description: This session will discuss basic and advanced hedge modeling concepts. It will explain common hedge strategies used to support guarantees and options embedded within life and annuity products and the materiality of these products within the US. Attendees will learn how Machine Learning acts to reduce the computer processing needed to simulate the dynamic hedging of product liabilities projected in the future across many stochastic scenarios. Actuaries working in consulting, software development, and a large life insurance company will provide a wide range of hedging viewpoints ranging from a broad industry perspective to a hedging practitioner. Attendees will obtain a comprehensive understanding of a novel ML approach to modeling dynamic hedges and the hedge optimization opportunity it presents.

Description: Are you interested in alternative investments and their role in professionally managed institutional portfolios? Join us for an engaging discussion that delves into the nature of alternative investments, the reasons behind their increased utilization, and the benefits and considerations of their use. Our speakers, representing both the insurance and pension sectors, will cover various asset classes and provide valuable insights.

Description: We explore four plausible scenarios for how AI might reshape the future, focusing on employment as the main driver. At one extreme, AI boosts productivity, sparks entrepreneurship, and leads to near-full employment through human-AI collaboration and reformed education. At the other end of the spectrum AI-induced mass layoffs trigger an economic spiral, with soaring unemployment, creative stagnation, and societal resentment. The middle path presents a fragmented transition with a two-tier workforce, periodic recessions, and variable adaptation success. Lastly AI fizzles due to poor returns and rising costs, causing economic stagnation and investor losses without widespread disruption. Each scenario also includes potential impacts on the insurance industry, ranging from innovation and growth to regulatory strain and investment losses in the others. Proactive scenario planning, by preparing for multiple futures by identifying early warning signals, adapting plans, and strengthening institutional resilience is encouraged. The article closes with four additional speculative scenarios, including government-controlled AI, AI dominance, militarized AI, and mass surveillance. Ultimately, the piece argues that while AI’s future is uncertain, the choices made today will shape whether it becomes a partner, a threat, or a disappointment.

Description: Call for essays on how actuaries can apply their financial skills to support non-profit financial management and promote societal purpose.

Description: History of Life Insurance insolvencies and evolution of statutory reporting requirements and laws to enable improved control over preventing insolvencies. Reflects my extensive personal knowledge serving on regulatory and industry boards and committees regarding these developments. A key item of solvency control in Risk Based Capital. References provided for FRBC/insolvency data from NAIC and the GAO.

Description: Infrastructure investments are growing as an asset class in institutional portfolios because they present significant diversification benefits to investors, and importantly for pension plans, typically represent long-term projects. Infrastructure presents a unique opportunity for investors interested in long-duration products that help match liabilities. This session outlines the structure of infrastructure deals, how investments can be made through either equity or debt financing, the importance of ESG, and how to incorporate infrastructure in an institutional portfolio.