Description: Discusses the emerging issue of non-formulaic reserves, which surrounds principles-based reserving, in a Q&A format.

Description: The transportation industry is in the early stages of profound changes, due to development of sophisticated driving safety and automation technologies.

Description: Analysis of the impact of projected multiemployer pension plan insolvencies over 20 years on affected participants and participating employers.

Description: A drive to push through the fear of failure is one of the traits that separates successful entrepreneurs from the pack. And as Nazir Valani learned early in his career, that drive is especially important when doubts come from people he looked to for encouragement.

Description: The SOA continues to support actuaries working with predictive analytics, from insurance companies and healthcare providers to financial service firms.

Description: Statistics about AFTRA Retirement Plan and its funded status.

Description: Statistics about AFTRA Retirement Plan and its funded status.

Description: There is nothing like a serious financial crisis to see if your risk management process works or not. The depth and breadth of the financial crisis in 2008 identified the strengths and more importantly exposed the weaknesses of the risk management process at Lincoln Financial. Enterprise Risk Management is tasked with understanding all the key risks inside a company and preparing the company to respond to those weaknesses. Lincoln Financial was exposed to multiple stress points as a result of the financial crisis and found themselves with insufficient resources to weather the storm. Ultimately the risk management process at Lincoln Financial was not fully capable of dealing with the depth and scope of the financial stress. Without access to government support it can be argued that Lincoln would not have survived the most profound financial crisis of the modern era. Presented at 2010 Enterprise Risk Management Symposium, Society of Actuaries, April 12-15, 2010.

Description: The U.K. Pension Protection Fund (PPF) was established in April 2005 to protect the pensions of members of U.K. private sector defined benefit pension schemes that have insufficient assets and whose corporate sponsor fails. The Fund takes over the pension scheme assets and assumes responsibility for the payment of compensation to the former members of the scheme. The PPF is funded by a levy on the population of eligible schemes. To improve its ERM framework, the PPF has undertaken a reverse stress testing exercise. This analysis provided the organization with new insights into its risk profile, the scenarios leading to the PPF’s potential “failure,” and interactions between these scenarios. This paper discusses the principles and objectives of reverse stress testing in the special case of the PPF and then illustrates the application of complex system science techniques for the purpose of reverse stress testing.

Description: Economic capital models are getting increasingly complex. An alternate copula free approach is presented which uses accounting data and an implicit correlation model to simplify economic capital calculations. Model simplification leads to robust and stable models. A banking case study is used to showcase how the model can be deployed using publicly available accounting data, capital adequacy, leverage ratios and shortfall tools.