Description: In this issue, we’re pleased to share with our members some recent nice activities and initiatives of AFIR- ERM on the risk management space. Please fi nd useful information in the article below from Michael Sherris, Chairman of AFIR- ERM Section.

Description: Read the December 2018 issue of Risk Management published by the Joint Risk Management Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.

Description: Hear from the editor’s on the March 2018 issue of Risk Management published by the JRMS.

Description: In this article, we will analyze the recent value investing experience in the Canadian equity market, determine the main macroeconomic variables that drove the value cycle performance in that period, and draw some conclusions about the benefits of style rotation between value- and growth-oriented styles in the management of an investment portfolio.

Description: Discussion of formulas for determining substandard extra cost of insurance charges for universal life or variable universal life policies.

Description: The most popular term product, guaranteed level premium term typically, with level premiums for 10, 20 or 30-years has basic reserves under 1980 CSO that are significantly larger than needed. The 2001 CSO may provide substantial relief from these excess reserves. This article discusses how much impact on profits this relief may provide.

Description: Tillinghast conducted a survey of mortality tables that life insurance companies used for pricing life products in 2001. One objective was to determine the underlying table being used, and the prospects of the 2001 CSO-related tables becoming a new basis for mortality measurement. This article summarizes some of the results.

Description: The purpose of this article is to discuss potential issues and considerations that may be encountered with the implementation of VM 20. Crucial considerations include the modeling software used, validation effort, assumptions used, complexity of the process, documentation, and run time. A key takeaway is that an integrated modeling platform with solid automation and asset-liability capabilities is imperative for addressing the issues and considerations encountered.

Description: This article examines the impact of a changing smoking rate on population-level mortality improvement and the importance of taking this driver into account.

Description: Effective risk management of a portfolio demands accurate and succinct models which explain the main risk factors. We look at the various requirements we demand of a model, and find that they can all be met with an import from medical statistics: survival models.