Description: Actuaries can leverage cluster modeling to reduce model runtime and cloud compute costs, which can be a real concern as companies transition from an on-premise grid to a scalable cloud solution. We consider practical considerations associated with clustering, through both US statutory and US GAAP lenses. Lastly, the results from a variable annuity liability clustering case study are presented.

Description: Author proposes an improvement and simplification of our theory of financial reporting by organizing them around the free cash-flow model. As will be demonstrated here, this will lead us to a compact, simple and intuitively elegant model, which captures all actuarial reporting concerns and which also unifies with ideas in mainstream financial accounting.

Description: Discussion of financial regulatory activities from January - March.

Description: A description of the controversy surrounding Actuarial Guideline 38 (AG38) and the joint working group that was formed to address the controversies.

Description: December 2016 edition of The Financial Reporter

Description: This is the first in a series of articles about accounting for reinsurance under GAAP Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). It provides an introduction to the topic, giving an overview of what has and hasn't changed. Changes include a few that directly address reinsurance and others that indirectly result from changes to direct accounting and the existing ties between reinsurance and direct accounting.

Description: This article discusses the possible factors that could impact shareholders' reported equity upon transition from IFRS 4 to IFRS 17. It classifies these factors in two categories: 'Factors Related to Insurer's Business and Accounting Practices up to the Transition Date' and 'Factors Related to Implementation of IFRS 17'. It also briefly discusses improvements that are expected in the financial statements from adopting IFRS 17.

Description: In this article, we collected data from the companies’ roll-forward disclosures related to calendar years 2021 and 2022 on Market Risk Benefit and shared a high-level summary of the Market Risk Benefit volatility that a focus group of companies incurred and summarized the most common ways to mitigate volatility.

Description: The 2020 edition of the Valuation Manual permits mortality data aggregation thereby enhancing credibility but also has accompanying requirements and addresses calculation of company experience rates.

Description: Summarizes financial reporting regulatory developments from April - June.