Description: Based on the work of the American Academy of Actuaries, this session will share insights on auditing an algorithm and provide an artificial intelligence governance checklist.

Description: This session will explore the latest developments in the Bermudian market with a focus on investment risk managmenet, covering the landscape of Bermudian investment portfolios, investment risk management framework and the introduction of Recovery Plan Rules. This session will place a specific focus on changes to the BMA's investment management framework including enhancements to the asset approval processes as well as the application of the Prudent Person Principle. Coming out of this session, attendees will gain valuable insights into how these recent regulatory changes enhance the investment risk management framework in Bermuda and offer practical guidance on navigating this evolving environment.

Description: The VM-22 standard provides critical guidance for the modeling of life insurance and annuity products, specifically in relation to the calculation of reserves and capital requirements. As insurance companies continue to adapt to emerging regulations and evolving market conditions, selecting the right assets to back insurance liabilities has become an increasingly important focus. VM-22 provides flexibility but also presents challenges in determining the optimal asset strategy. The goal is to support actuaries in navigating this complexity and ensuring sound financial decisions.Our proposed session will focus on the practical aspects of asset selection under VM-22. We will highlight key considerations for selecting the appropriate assets to match the liabilities of insurance products, and how this impacts reserve calculations and risk management. To provide real-world insight, we plan to invite one or two clients who have successfully implemented VM-22 asset selection strategies. Additionally, we will collaborate with a trusted technology partner that has helped at least one client with the field testing of asset selection strategies under VM-22. This will allow us to offer a comprehensive understanding of the challenges faced in asset selection, the strategies employed, and the lessons learned through client case studies and technology integration.Attendees will gain a deeper understanding of the complexities of asset selection, the tools available to support decision-making, and best practices to optimize outcomes under the VM-22 framework. We aim to provide actionable insights and foster discussion on how actuaries can use the latest tools and techniques to manage asset-liability matching effectively and efficiently.

Description: As the adoption of offshore reinsurance strategies continues to grow among insurers seeking to optimize their capital and balance sheets, a critical focus for both prospective and current adopters is the establishment or enhancement of existing data, technology, and modeling processes to meet offshore reporting requirements. Drawing from practical experience, this presentation aims to provide attendees with key insights for successfully producing the necessary reporting items for offshore reinsurance entities, along with considerations for operational efficiency, model and data governance, and management decision-making.

Description: The objective of this session is to help actuaries understand the impact of tax regulations on actuarial reserving and the calculation of the Value of Business Acquired (VOBA). Actuaries must ensure compliance with tax reserving requirements, assess differences between statutory and tax reserves, analyze tax treatment of VOBA in mergers and acquisitions, and evaluate their financial implications. By integrating tax considerations into actuarial modeling, insurers can optimize tax efficiency, maintain regulatory compliance, and enhance financial performance.

Description: Large Language Models can help you write emails, code in SQL, R and Python, and be more efficient. But should you use it? Let's review the professional guidance available to actuaries, including the work from the Academy of Actuaries.

Description: MSA Research established a committee in 2024, to build industry-standard Key Performance Indicators (KPIs) for IFRS 17. The committee was comprised of insurers, reinsurers, audit and consulting firms, professional associations, trade organizations, technology partners, and regulators.

Description: The implementation of the IFRS 17 insurance accounting standard has brought significant changes to the financial reporting landscape of insurance companies. With new disclosure requirements and altered profit analysis, understanding and interpreting future profitability have become a topic of concern for the industry. While stability remains a key objective for insurance companies, the earning patterns might become more volatile especially when the contractual service margin (CSM) is exhausted, and a loss component (LC) needs to be established. Reinsurance, a common risk mitigation tool, can play a pivotal role in managing earnings volatility and minimizing losses for onerous measurement units. In this article, we propose a new key performance indicator (KPI) called “loss recoverability” to assess the performance of reinsurance treaties in achieving these objectives. We explain how this KPI can be utilized in multiple scenarios to evaluate the effectiveness of reinsurance strategies and pursue stability in earning patterns.

Description: This article aims to delve into the rationale and calculation logic of the variable fee approach (VFA) which is applied to the insurance contracts with direct participation features under IFRS 17. In actual practice, the variable fee approach can be implemented in two methods, which are from fee income or total cash flows point of view. These two methods will achieve the same outcomes but are featured with different insights and varying degree of operational ease. Detailed roll-forward steps of contractual service margin (CSM) for these two methods are elaborated in the article, along with a numerical example by using a variable universal life product to help the readers comprehend the rationale behind the variable fee approach.

Description: IFRS 18: Introduction for Insurers