Description: Under long-duration targeted improvements (LDTI), there are a few insurance liability balances that now are required to be fair valued, market risk benefit (MRB). The session will start from all the applicable balances that are required to be fair valued under LDTI ((i.e., MRB, financial accounting statement (FAS) 133, value of business acquired (VOBA) upon business combination)). 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 indexed annuity (FIA) contract. The case study will discuss some MRB fair value considerations and followed by FAS 133 fair value techniques. It will go over VOBA fair value estimation by using actuarial appraisal method with a few twists (e.g., using market yield in generating distributable earnings is better than using book yield and adjusted to bring it to fair value later on).

Description: Outlines a generic business model for a life insurance company and concludes with thoughts on future trends and prospects.

Description: Given the rise in interest rates during 2023, the session will discuss the implication of increasing rates on FA and FIA business by looking at industry experience for FA and FIA products for 2023 and earlier years. Additionally, the session will walk through partial withdrawals, GLWB utilization, mortality and what to expect as interest rates volatile continues. The session will also discuss how direct writers and reinsurers are handing the inforce management aspects of these products in the uncertain and volatile economic periods.

Description: This session will summarize the key National Association of Insurance Commissioners (NAIC) activities with a primary focus on updates to principle-based reserve valuations and appointed actuary topics. Hear insights into the current set of activities and initiatives being considered and/or adopted by the NAIC Life Actuarial Task Force (LATF) and the NAIC Risk Based Capital Working Group.

Description: This article presents a discussion of Actuarial Guideline 54 (AG LIV), both the regulatory impetus in its creation as well as the requirements it outlines for a RILA contract to qualify as a variable annuity under the NAIC Variable Annuity Model law and thus be exempt from Fixed Annuity Non-Forfeiture Requirements. Includes an example calculation.

Description: The speaker will share his insights into the hedging challenges faced by FIA and VA business in the current market environment.

Description: While our ability to access and analyze large quantities of data is better than ever, many long-term products suffer from sparse data in critical risk areas, such as deep in-the-money lapse experience and long-term utilization rates for income guarantees. The presenters will explore industry-level annuity experience data for these types of situations, and discuss quantitative approaches to addressing them in pricing and other applications.

Description: This abstract describes a study that presents a hypothetical example of a UK term annuity firm and studies its solvency over the period 1985-2010 under various economic capital calculation approaches.

Description: The author proposes an annuity clearinghouse to encourage employers to offer annuity accumulation products in their defined contribution plans. This addresses the lack of portability that is associated with, and discourages the use of, defined contribution plans.

Description: A discussion of tail-design LTC riders for annuities and how contract cash values are offset by reductions to the annuity contract. LTC benefits, and how they relate to the annuity contracts, are also discussed.