Description: The implementation of the IFRS 17 insurance accounting standard has brought significant changes to the financial reporting landscape of insurance companies. With new disclosure requirements and altered profit analysis, understanding and interpreting future profitability have become a topic of concern for the industry. While stability remains a key objective for insurance companies, the earning patterns might become more volatile especially when the contractual service margin (CSM) is exhausted, and a loss component (LC) needs to be established. Reinsurance, a common risk mitigation tool, can play a pivotal role in managing earnings volatility and minimizing losses for onerous measurement units. In this article, we propose a new key performance indicator (KPI) called “loss recoverability” to assess the performance of reinsurance treaties in achieving these objectives. We explain how this KPI can be utilized in multiple scenarios to evaluate the effectiveness of reinsurance strategies and pursue stability in earning patterns.

Description: The article contains a description of the Emerging Topics Community. The focus of the article is what is a community, what makes the Emerging Topics Community special, and benefits of the Community. Included after the discussion on the community are ways to get involved and be a part of the community.

Description: The author shares their experiences and timeline in building an actuarial science program from scratch and reaching the Advanced Curriculum level

Description: Welcome to the May edition of The Financial Reporter! In her “Chairperson's Corner”, Joy Zhang highlights the section's upcoming activities for the year and ways for everyone to get engaged.

Description: Discusses the Validation by Education Experience and how to achieve credit.

Description: Patrick Ring chaired the Retirement Section Council’s (RSC) Communication Committee for many years before stepping down earlier this year. Learn more about his insights on the RSC Communication Committee's work.

Description: In this article, Aneesha Deshpande examines how Hagerty's complementary business models- specialty insurance and automotive lifestyle and membership services- are a result of a deep understanding of customer needs.

Description: This article addresses challenges that arise later on in retirement years related to support systems, physical needs, and living arrangements. It highlights the "Late-in-Life Decisions Guide" published by the Society of Actuaries in 2022.

Description: This article discusses two perspectives covering the experience of attending and presenting at in-person conferences after COVID-19. It also briefly covers the value of attending conferences, volunteering, and networking.

Description: Looks at the non-traditional role of actuary Kim Johnson as a vice president of investor relations.