Description: This paper provides a description of a system using statistical spatial methods for measuring, analysis, and managing ERM losses. An example of its application to a delinquency rate in a residential mortgage portfolio analysis demonstrates how this methodology can help decrease a company’s exposure in high-risk areas and increase exposure in low-risk areas.

Description: Abstract: The percentage of the population who are obese has grown dramatically worldwide over the last several decades, although stabilizing recently in the United States. Studies have found the effects on mortality to be inconsistent and controversial because of methodological differences and the complexity of the relationship between obesity and mortality. This paper discusses this relationship and sheds light on the likely effects of this epidemic. Issues associated with the so-called obesity-mortality paradox, where mortality experience is lower for those individuals who are overweight and in some who are obese compared with the mortality of those in the normal weight category, are examined. Although certain recently reported studies of the relationship between mortality and obesity indicate that obesity is related to a reduced percent of additional mortality, this may in part be due to the shorter average time that those currently obese have been exposed to their condition. Nevertheless, the amount of health care costs and rates of disability associated with being obese are significant, contributing to the increase in overall health care costs as they become more numerous and age. Although obesity is being addressed with a great deal of activity and publicity, they will continue to prove challenging for individuals and society to manage and overcome.

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: Analyse the increase in the number of centenarians in Quebec (Canada) across birth cohorts (1871 to 1901). Outline some of the demographic mechanisms involved.

Description: We ask whether we can find support for the previously reported upper limit of the force of mortality of 0.7, i.e. about the probability of tossing a fair coin.

Description: The purpose of this paper is to outline the development of a critical illness rider to be launched on a guaranteed level term product. The paper addresses the following topics: market needs analysis, design considerations, benefit design, pricing assumption, and development of pricing model and pricing results, including sensitivity testing.

Description: Explores the open vs. closed systems debate with regards to actuarial modeling and exposes the over-simplification. Valuable for anyone who uses models.

Description: This article provides an overview of the latest IAS developments that affect insurers.

Description: Responsibilities Of The Actuary For Communicating Sarbanes-Oxley Control in accordance With Actuarial Standards of Practice

Description: This is the third in a series of articles about revenue recognition for insurance contracts. The articles address revenue recognition for those contracts that are measured by the building blocks approach under the emerging new standards for insurance that are being developed by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) of the United States.