Description: Risk adjustment is widely used by public and private payers in value-based contracting and other risk-sharing arrangements aimed at addressing population health. Addressing social determinants of health (SDOH) and improving equitable outcomes is one of the aims of population health. Could SDOH be incorporated into risk adjustment? If so, how and how effectively? What implications might this have for market participants? In this session, Joan Barret, FSA, MAAA, from Axene Health Partners will begin by presenting background and findings from the 2022 SOA research report 'How Does Where you Live Impact Your Health?.' This is a question addressed through deep literature review and quantitative analysis, followed by an exploration of strategic approaches and barriers for payers and providers that wish to address SDOH inequities. Then, Rong Yi, FSA, MAAA, and Jeff Milton-Hall, FSA, MAAA, from Milliman will present their new SOA-sponsored analysis regarding integration of SDOH factors into Medicaid managed care risk adjustment. They will cover risk adjustment design considerations, policy and operational considerations for actuaries and states that wish to integrate SDOH into risk adjustment, simulated variation in financial outcomes for risk-bearing organizations when such integration occurs, and variation in the relationship of SDOH factors and morbidity to modeled risk across programs and populations. At the conclusion of the session, attendees will leave equipped to think critically and act effectively with respect to SDOH in their own work, from measurement and analysis design to actuarial interventions.

Description: This debate-style presentation focuses on metrics used to measure and manage insurance companies. Changes in accounting bases (LDTI, IFRS17, etc.) challenge historic metrics to be adjusted or replaced to accommodate new regimes. The long-duration nature of revenue recognition and profit emergence is unique to the insurance industry, and there is no debating the importance of accounting regimes to facilitate earnings recognition and comparability. However, insurers face challenges from the inherent mismatch between capital measures and accounting profits. This mismatch creates competing interest when it comes to both management decisions and executive compensation. To provide guidance, experts offer their unique perspectives and opinions to a debate of emerging best practices in accounting KPIs, cash-based metrics, and executive incentives. The discussion will be guided by probing questions, such as: - What challenges are faced by external users of financial statements? - Accounting changes did not impact business economics, so why discuss metrics? - What are examples of historic and emerging accounting and cash-based metrics? - How can insurers implement best practices in financial reporting? At the conclusion of the session, attendees will have an improved appreciation for actuarial valuation, specifically, the critical role that our interpretation of results plays in the broader financial system.

Description: Due to increasing financial reporting complexity and growing expectations from external auditors and regulators, insurers are exposed to a greater risk of reporting errors and consequences thereof. Insurers that implement and practice a strong actuarial governance framework can substantially reduce these risks while simultaneously increasing process efficiency. Yet, the range of actuarial governance practices found currently in the industry is large. More established insurance organizations may be updating long-standing (and possibly outdated) frameworks, while newer companies may not even have a formal governance framework in place. Regardless of the situation, many insurers could benefit from refreshing actuarial governance objectives and from exploring methodologies that can be employed to meet these goals. Explore the world of actuarial governance as it pertains to models, assumptions and data. Outline some key considerations for the development of governance frameworks that balance pragmatism and the complexities faced by insurers today, including references to relevant ASOPs where applicable. As an illustrative case study, considerations for an actuarial governance process from LDTI financial reporting requirements will be examined.

Description: This session will showcase how from an actuarial perspective IFRS17 has its roots in market consistent valuations. It will also show how International Financial Reporting Standard (IFRS) 17 is rooted in probability-weighted stochastic scenarios-same as fair valuation, and how initial recognition sets the stage, as in the pricing basis and report, for actual experience to emerge as in the subsequent recognition. A detailed model will be given for a simple annual premium non-par endowment and actual numbers given and explained. The stochastic model will explain in detail the key reserve items in IFRS 17 including: - Liability for remaining coverage (LRC) - Risk Adjustment (RA) - Contractual Service Margin (CSM) And it will explain their interactions with one another. A discussion will be held regarding universal life policies with simple interest guarantees. And how these guarantees merit a valuation similar to Lookback options because of their path-dependent nature.

Description: Recently, life insurers have seen a lot of change in their business model. Whether it be new accounting rules (e.g., long-duration targeted improvements [LDTI]) or new capital charges (e.g., structured equity tranche), companies are being forced to reconsider how they invest their assets. Today's session will help attendees understand how companies are using modelling software to help understand the impact of these changes on both their existing portfolio and potential changes that these new regulations may lead to. By attending, attendees will get a better understanding of: - How life insurers' asset allocation decisions are different than other financial companies (e.g., banks, pension funds, P&C companies) - How these changes may impact the risk vs. reward tradeoffs that life insurers' face - How these companies can use modelling software to help evaluate these potential impacts

Description: Court is in session and you are the jury! Follow along as challenging aspects of actuarial professionalism are explored in a court-like setting, deliberately based on what you already know from your own experience, as well as what you learn in this session. Then, deliver your verdict accordingly. Who says learning about actuarial professionalism can't also be fun? If you attended in the past, plan on joining again as we will have new material and updates for discussion. At the conclusion of this session, attendees will be able to: - Apply actuarial professionalism concepts. - Identify key ASOPs, Professional Code of Code, and/or Qualification Standards for actuaries.

Description: Attendees will learn how carriers and InsurTechs interact with private equity (PE), banks, and other investors who are increasingly interested in taking on traditional insurance risks. The introduction includes a review of recent large transactions, trends in InsurTech funding, and a primer on a typical transaction. There will also be a discussion amongst a panel of experts on the 'why' behind recent trends and future outlooks. Some specific questions we'll answer: Is this a good thing for the insurance industry? How are these trends impacted by interest rates? Where do actuaries fit in? How can a PE/bank investment be set up for success?

Description: A comprehensive webcast designed to bring together industry practitioners to discuss the current state of Model Risk Management (MRM) frameworks. This event will delve into the advancements in MRM, the challenges faced by professionals in the field, and emerging trends such as machine learning model validation that are set to shape the future of MRM. Engage with experts, share knowledge, and explore innovative solutions to enhance the effectiveness of your MRM framework.

Description: Runtime of actuarial models and their associated processes has been a growing concern amongst the industry. This session will explore how expanding regulatory requirements, refined analytical objectives, and the desire for process optimization have increased the amount of processing power needed to get answers in a timely manner. Presenters will dive into how companies are leveraging data, refined pre- and post-processing routines, runtime reduction techniques, and cloud-based solutions to increase their efficiency in producing, analyzing, and validating model results.