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: The document is a report on the impact of inflation in retirement based on survey findings conducted by the Society of Actuaries Research Institute in partnership with Optimity. It includes survey questions and results, along with observations on the impact of inflation on personal finances.

Description: Bringing together industry experts spanning investment management and property/casualty insurance, this panel discussion will take the audience beyond spelling ESG correctly and will share their insights about what Environmental Social Governance is.

Description: For over a decade, the low interest rate environment in the U.S. has shaped the life insurance industry. Challenges in finding reasonable yields on investment-grade assets have defined insurer decisions on product designs and business mix. Now, we see a material shift in the interest rate environment, with the 10-year U.S. Treasury rate increasing nearly 3% from 2020 lows. In this follow-up to ImpACT 2021's popular Interest Rates May Be Rising...Now What Do We Do?, join us as we investigate the industry's response to the shifting interest rate environment with respect to pricing and product design, inforce and capital management, and the M&A and reinsurance markets. Have insurers been altering product designs and management actions to take advantage of the increased investment yield on long-term assets? Or are we seeing business-as-usual? How have the changes in rates impacted policyholder behavior? What are the benefit and risk of the rising interest rate for life insurers? We will also discuss developments in the M&A and closed block reinsurance market as (re)insurers continue to navigate the evolving economy. Gain an understanding of the impact that the new interest rate environment has had on life insurance and annuity pricing and product design, inforce and capital management, and the M&A and reinsurance markets.

Description: It's time to talk about Bermuda and Cayman as offshore jurisdictions for life reinsurance. Bermuda, a growing destination for life and annuity reinsurance over the last few years is developing significant changes to its regulatory framework. Asset, liability, and capital requirement will all change under proposed new rules. The changes will not only require rethinking of U.S. and international reinsurance ALM strategy and pricing, but also product strategy and pricing for primary insurers. Developing compelling ALM strategies and products under the evolving Bermuda regulatory framework is an interesting challenge for the U.S. and international insurers and reinsurers. In addition to Bermuda, the speakers will discuss the emerging Cayman life reinsurance market.

Description: The NAIC is attempting to transition to a new economic scenario generator. The process has been ongoing for several years and many interesting challenges have emerged along the way. Get an overview of where this transition is at and what comparatives have been established between the existing and proposed economic scenario generators through scenario releases and field testing. A significant amount of discussion and investigation has been done concerning acceptance testing for interest rates, equities and corporate bond returns.

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: Presenters will discuss difficulties within the new NAIC ESG, such as how the model deals with interest rate flooring and its treatment of the linkage between equity and treasury bond returns. They will also discuss the documentation and governance process surrounding the new NAIC ESG.

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: 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.