Description: Bringing together industry experts spanning investment management and property/casualty insurance, this panel discussion will take the audience beyond spelling ESG correctly and will share their insights about what Environmental Social Governance is.

Description: The Federal funds rate increased by 4.25% in 2022 with further increases in 2023, which have already resulted in a liquidity crisis for a few banks. As the rapid increase of the interest rates pushed the new money rates above the yields of many life insurers’ investment portfolios, insurance companies are facing a dilemma between compressed margins from peer pressure and the concern with liquidity shortfalls and realized capital losses should mass surrenders happen. This paper discussed main emerging risks under rising interest rate environment, and several ways to mitigate these risks.

Description: In this session, the panelists discuss several common cognitive biases that can adversely impact the capital allocation decision process, introducing the notions of time, accounting convention, positivity, hierarchy, and social proof in describing them. Historical case examples of sub-optimal capital allocation are then explored, identifying the contributing behavioral factors including the simultaneous confluence of multiple factors. The panelists will close the session with several suggestions for attendees to consider for incorporation into their decision-making processes. At the conclusion of the session, attendees will be able to: - Learn common cognitive biases that impact capital allocation decisions - Differentiate which biases impact different aspects of the capital allocation process - Build awareness of biases affecting capital allocation decision models - Mitigate cognitive biases present in decision making processes

Description: This research report summarizes methodologies used for yield curve extrapolation to value liability cash flows that extend beyond the maximum observavble portion of the yield curve.

Description: The U.S. life insurance industry has been increasing its exposure to complex assets, either directly as investors or via offshore reinsurance (e.g., Bermuda). In order to address regulatory concerns about such investments and reinsurance arrangements, the NAIC has begun multiple initiatives to improve disclosure and strengthen regulatory requirements, and the Bermuda Monetary Authority is also strengthening its requirements. Hear a summary of these initiatives, and get an update on the latest developments at the NAIC and at the Academy on these topics.

Description: Hear AM Best rating analysts discuss the rating process and the best capital adequacy ratio (BCAR), a quantitative foundation for AM Best’s assessment of carriers’ financial strength. The benchmarking of BCAR scores for various company types (national MCOs, BCBS plans, smaller regional plans) will be discussed. Look at how changes in investment and underwriting environment impacted the results over the past several years. Further, AM Best’s view of the quality of capital and various factors impacting the overall assessment of the balance sheet strength will be discussed.

Description: Examine how investment portfolios have been changing over recent years with a panel of industry experts from the life insurance industry, and learn what lies ahead. This will be a highly practical session, with real-life case studies referenced as much as possible.

Description: Modeling Approaches and Challenges focuses on approaches to real world simulation and the challenges and considerations in real world simulation. Topics include: A frequency domain approach to build realistic multi-horizon scenarios. (Ortec approach) Cascade models structure linking models for major asset classes and economic variables. (Moody’s approach) Overview of models, calibrations & approaches within the context of different use cases. Deterministic & stochastic approaches. Importance of model re-calibration flexibility. We will also discuss specific insights into considerations and challenges in real world simulation, which include topics like: Setting capital market assumptions and/or calibration targets. Assumptions about correlation and causality. Calibrating the model to capital markets assumptions. Validating the model against capital market assumptions. Role of history, market data and stylized facts. Importance of back testing. Calibrating the model to multiple investment horizons. Inclusion of alterative asset classes such as private equity, infrastructure, and direct real estate. Associated issues of limited data, illiquidity and greater uncertainty about calibration targets.

Description: The last 20 years of global interest rate experience has low interest rates for long periods of time ('low for long'), negative interest rates, strange yield curve shapes, and now the most rapid increase in interest rates in our history. What is it we should be focused on as risk managers? Low for long, high rates due to prolonged inflation, or some blend of the two? The session will discuss our interest rate experience and the factors that appear to be dominant for the next decade. The session will address how one establishes a set of stylized facts to guide the development of a suitable interest rate model and how calibration targets can be determined. Discussion will then move to the suitability of existing interest rate models for capturing the real-world risks that actuaries and other finance professionals are concerned with. Are there interest rate models that are fit for purpose given the past 20 years of experience? A selection of candidate models will be discussed and illustrated.

Description: Advanced Topics in Corporate Finance and Enterprise Risk Management (ERM) covers a broad range of corporate finance concepts. As part of a 10-year strategic plan exercise, you'll apply opportunity engineering to help guide senior management in introducing a new product to market. You'll also focus on three applications of Extreme Value Theory (EVT), which are covered and tested in a business context.