Description: In 2007 the International Accounting Standards Board IASB released a discussion paper proposing a new accounting model for insurance contracts, known as the current exit value model. One aspect of the proposed accounting model is that claim liabilities would need to include explicit margins satisfying certain criteria. Currently it is common for U.S. medical insurers to include explicit margins in their claim liabilities. However, we demonstrate that the margin approach most commonly used today by U.S. medical insurers does not satisfy the objectives articulated in the IASB discussion paper regarding the role of margins. We then propose a new formula for including explicit margins in U.S. medical insurance claim liabilities in a manner that is more compatible with the principles articulated in the IASB discussion paper. Finally, we illustrate our proposed claim liability formula using an example drawn from real-life data.

Description: Insurance company financial reporting and performance measurement are going through a significant transformation. Insurers are beginning to look at their business based on what many refer to as the “economic value framework.” Under this framework insurance companies determine the economic value of the capital invested in their business and the economic value of earnings to derive a risk-adjusted return on capital. Standard setters, primarily European insurance regulators through Solvency II and the International Accounting Standards Board through IFRS Phase II, propose adopting many of these concepts for solvency and performance reporting.

Description: Introduction to Actuarial Considerations in Insurance Mergers and Acquisitions, M-FI03-1.

Description: This paper was intended to give a broad overview of the international M&A process and the role of the actuary in it. There is, however, no cookbook approach, as the dynamics of each transaction are unique. It is important for buyers and sellers alike to get the best advice possible to conclude a successful transaction. From Actuarial Considerations in Insurance Mergers and Acquisitions, M-FI03-1.

Description: This study addresses some aspects of the financial impact on women under the Social Security benefits reform or redistribution.

Description: This paper models the extent of the tax dollars being lost by the government today because of Qualified Pension Plans and IRAs, and then goes on to project the extra revenue that will accrue to the government from these same pension plans when the baby boomers retire.

Description: Read the Sept. 2017 issue of Small Talk published by Smaller Insurance Company Section. Practical information on trends that impact sections and activities.

Description: Discussion of a newly released LTC experience study, including description of data and its increased scope compared to the prior report, reporting specifications, and findings.

Description: Runoff LTC blocks present a wide range of business risks. Outsourcing certain tasks to third parties can help mitigate these risks.

Description: Discussion of the selling of life insurance to the middle income market through banks and with the support of new technologies and underwriting processes.