Description: Discussion about the pros and cons of providing lifetime income options in defined contribution plans, and about the pros and cons of annuitization vs. structured payouts. Discussion triggered by an SOA research report authored by Steve Vernon.

Description: Key findings from a market research study which the SOA undertook as part of their strategic initiative: Untapped Opportunities for Actuaries in Health.

Description: Presented at August 2011 46th Actuarial Research Conference. Develops the Multi-threshold Compound Poisson surplus process with interest which is useful for pricing. Then develops the Gerber-Shiu function for MAP processes featuring interest which allow claims to be factored in. Finally develops closed-form solutions of the absolute ruin probability for Erlang IAT and exponential claims.

Description: Steps for establishment of a strong ERM program.

Description: When companies engage in risk management activities, they can be seen as modifying their distributions of future outcomes. Often, this takes the form of trading off a sure cost for a decrease in some potential risk of loss. Companies may carry out these activities with several goals in mind, such as reduction in earnings volatility or preservation of capital. This paper will demonstrate a method for evaluating possible strategies by dividing the effects on costs and risks into three tranches: earnings, impact and estate. The tranches can be associated with different interests of the various stakeholders. This trifurcation analysis can help to explain the risk-reward trade-offs of different risk treatment alternatives and can aid in risk-related decisionmaking.

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.

Description: An insurance product’s return on required equity demonstrates how successfully its results are covering the company’s basic capital. Using some simplified assumptions, it is possible to calculate this return ratio and decompose it without a full projection of liabilities.

Description: An insurance product’s return on required equity demonstrates how successfully its results are covering the company’s basic capital. Using some simplified assumptions, it is possible to calculate this return ratio and decompose it without a full projection of liabilities.

Description: Many top-performing businesses aren’t just risk aware, but rather risk intelligent. Such a posture helps prepare companies for a major event and can demonstrate to a regulator or auditor that an appropriately strong control framework is in place. Better still, companies gain real strategic value from a “risk adjusted” understanding not only of their threats and vulnerabilities, but also the upside opportunities associated with various risks. It starts with having both qualitative and quantitative information to identify, assess and manage risks. Strategic risk management, at its core, is about creating value by increasing transparency and accountability, and quality of information. More than a mere compliance exercise, effective risk management enables more informed strategic decision making, increased accountability and transparency, a greater likelihood of organizational success, and – ultimately – competitive advantage, as borne out by many studies that correlate risk management and financial results.

Description: Article describing key steps to develop an incentive compensation plan that aligns to the company’s risk profile, mitigate excessive risk taking, retain talent and meet the disclosure requirements. The yearly development cycle includes develop the incentive compensation program, communicate and implement and assess the plan performance on both short and long term horizon.