Description: In this article the author compares ERM issues, strategies and scenarios to the process of driving to work on a four-lane highway.

Description: The editor introduces the articles in this issue. Articles that include topics on systemic risk, economic capital, variable annuties, etc.

Description: This article presents a hypothesis that the market cycles are primarily created by human actions, behavior and assumptions rather than by random variables. An analysis of main financial events over the last decade reveals that: a Every one of these events has had a human touch b The current financial crisis is an aftermath of the excessive economic boom during this period and c A new economy must emerge from human ingenuity and innovation.

Description: On behalf of the Society of Actuaries, the Casualty Actuarial Society and the Canadian Institute of Actuaries, we are pleased to provide a series of essays on Risk Management: The Current Financial Crisis, Lessons Learned and Future Implications. This e-book is the result of a call for essays on the subject coordinated by a variety of actuarial groups. This is the introduction to the book of Essays. See the SOA web site for the full series of essays.

Description: In the current financial markets turmoil, it is tempting to ask whether things might have turned out differently. I think the pain in our financial markets would have been less if more actuaries had been involved. 10 reason are offered.

Description: The Federal funds rate increased by 4.25% in 2022 with further increases in 2023, which have already resulted in a liquidity crisis for a few banks. As the rapid increase of the interest rates pushed the new money rates above the yields of many life insurers’ investment portfolios, insurance companies are facing a dilemma between compressed margins from peer pressure and the concern with liquidity shortfalls and realized capital losses should mass surrenders happen. This paper discussed main emerging risks under rising interest rate environment, and several ways to mitigate these risks.

Description: This newsletter provides a regulation outlook for the use of AI/ML in insurance industry, interpretations of regulatory expectations and what insurers should consider when managing risks associated with the development, implementation and use of AI/ML models/tools.

Description: Insurance companies are not immune to liquidity risks.

Description: This essay examines the root causes of the 2008 global financial crisis precipitated by the bursting of the housing bubble. The author suggests that if fraud is not addressed, future crises, perhaps even worse, will occur.

Description: The IAA Risk Book provides a set of high quality reference materials for use in managing the uncertainty of insurer risks.