Description: A closer look at the Reinsurance Loss-Recovery Component (RLRC) under IFRS 17

Description: June 2024, AG54 will begin for new RILA sales. This guidance requires companies to determine an interim value that is more aligned with the market value of the position on a daily basis. This discussion will talk through companies adoption of AG54, lessons learned, approaches and integration with the administration system. Additionally this session will discuss how AG54 impacts new product design, reserving and capital implications.

Description: This session will address the risk management, reserving and capital issues associated with index-linked annuities including financial reporting considerations for FIAs and RILAs, benefits of combining VA and RILA hedging and reserving under VM-21, current and future challenges with FIA reserving under VM-22, potential capital redundancy for FIAs, RILA interim values under AG 54, NAIC economic scenario reform, asset modeling, fund mapping and more!

Description: It's time to talk about Bermuda and Cayman as offshore jurisdictions for life reinsurance. Bermuda, a growing destination for life and annuity reinsurance over the last few years is developing significant changes to its regulatory framework. Asset, liability, and capital requirement will all change under proposed new rules. The changes will not only require rethinking of U.S. and international reinsurance ALM strategy and pricing, but also product strategy and pricing for primary insurers. Developing compelling ALM strategies and products under the evolving Bermuda regulatory framework is an interesting challenge for the U.S. and international insurers and reinsurers. In addition to Bermuda, the speakers will discuss the emerging Cayman life reinsurance market.

Description: As companies strive to remain competitive in today's dynamic marketplace, the role of Financial Planning & Analysis (FP&A) has evolved significantly. It has transitioned from a purely operational function to a strategic imperative. This is most apparent in the life insurance sector, where complex regulatory changes and technological advancements are reshaping traditional practices. In this session, we will delve into the critical aspects of modernizing FP&A within the life insurance industry, exploring key challenges, emerging trends, and best practices. Key areas of discussion include: - Navigating Different Regulatory Frameworks: Companies have to navigate different regulatory lenses for various purposes including budgeting, capital management, rating agencies review, etc. The implementation of regulatory frameworks such as IFRS 17, LDTI, and Principles-Based Reserves (PBR), and the recent trend in establishing Bermuda entities has significant implications for financial reporting and capital management in the life insurance sector. We will discuss how companies can explore strategies for compliance and adaptation within the FP&A process. - Strategic Planning and Resource Allocation: Companies are faced with higher expectations to guide both internal and external parties on the financial impact of their plans. A comprehensive exploration enabled by advanced analytics is critical for communicating, prioritizing, and allocating a company's resources on transactions, product development, and capital management. Our panel will explore how strategic planning has advanced in recent years, providing insights into effective approaches for aligning strategic objectives with financial resources. - Technological Advancements: The rapid pace of technological innovation has opened new possibilities for FP&A, offering advanced modeling techniques and data analytics capabilities. However, many organizations face challenges in harnessing these technologies effectively. This session will examine the role of technology in modernizing FP&A and highlight best practices for implementation. By attending this session, participants will gain: - Strategies for aligning strategic planning with resource allocation and effectively communicating financial impacts to internal and external stakeholders. - An understanding of the current state of FP&A within the life insurance industry, including emerging trends and challenges. - Insight into the implications of regulatory and technological advancements on FP&A processes and functions. - Best practices for leveraging technology to enhance FP&A capabilities and drive strategic decision-making.

Description: The NAIC revamped SSAPs No 26R 'Issuer Credit Obligation', No 43R 'Asset-Backed Securities' and 21R 'Other Admitted Assets' effective 1/1/2025. The definition of a bond was changed to be principles-based rather than based on legal form. Current and future bond holdings will need to be assessed against the frameworks outlined in the revised SSAPs to determine which assets will continue to remain on Schedule D (i.e., in scope of SSAP No. 26R and 43R) and which assets will need to be reclassified to Schedule BA (i.e., in scope of SSAP 21R). By attending this session, attendees will understand the regulatory, financial and operational implications of this change for insurers.

Description: Occasionally, in the financial reporting world the stars align, and insurers get the opportunity to leverage their financial results and cashflows across multiple reporting use cases. Such opportunity came about with implementation of the U.S. generally accepted accounting practices (GAAP) long-duration targeted improvements (LDTI) accounting standard, that required companies to move away from locked-in assumptions for traditional life and limited-pay products and produce best estimate liability cashflows for these business lines.

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: 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: 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.