Description: Editor’s note: This is the first article in a series of three covering the Society of Actuaries (SOA) Competency Framework. The subsequent articles will appear in future issues of the Actuary of the Future newsletter. The Society of Actuaries (SOA) Competency Framework is a powerful tool to enable you to design your future. Though it has been the SOA’s instrument for prioritizing continuing education and support to members since 2010, many actuaries are still not fully aware what a potent tool it can be to them in planning their personal careers.

Description: Many retirement actuaries have experience developing, implementing, and monitoring Liability Driven Investing (LDI) strategies for plan sponsors. These strategies typically involve modifying a plan’s investment strategy to remove a significant portion of the investment and interest rate risk now or at some point in the future when specific triggers are met. The tactics often involve the use of fixed income assets to cash flow and/or duration match the liabilities. In the spirit of helping actuaries expand their roles in an evolving defined contribution world, this article explores the application of LDI and derisking strategies within defined contribution and individual retirement accounts. The economic theory behind this approach is called the lifecycle hypothesis, or lifecycle finance. The benefits of the lifecycle finance method are that it provides a safe approach to save for retirement and a secure source of floor income during retirement. Similar to pension plans, each individual has his or her own idiosyncratic needs, wants, and risks that should be considered. Actuaries are uniquely situated to help defined contribution plan sponsors, individuals, and even themselves implement the lifecycle finance approach by developing and distributing tools and methods that focus on income (rather than wealth), LDI strategies, and personalization.

Description: Discussion and Opinion on how randomness affects measurement of provider contracting risk-sharing agreements

Description: The August/September 2014 edition of The Actuary magazine—the Society of Actuaries’ flagship publication.

Description: Interview with a global leader in life reinsurance. Includes background, thoughts on industry's challenges, trends, opportunities and thought re: leadership

Description: Life reinsurance activity in Bermuda has experienced rapid growth in recent years. This article explores the key drivers of this growth.

Description: This article highlights the significant steps being taken by the UK actuarial profession to establish a more focused role in risk management.

Description: This is a table from an article in The Actuary Magazine entitled On Business Strategy.

Description: This is a discussion of the medical loss ratio, the confusion and debate over the calculation method under the new MLR requirement, and the opportunities it presents to consulting actuaries.

Description: Introduces the concept of total risk analysis, a methodology used to answer questions like "what are the chances we will lose more than $1 million"