Description: Emerging Applications of ESG Methods offers ground-up insights on cutting edge applications of economic scenario generation. The course will focus on the incorporation of climate change risk in scenario modeling and investment applications of ESGs. The following topics will be covered: Approaches to climate risk modeling. Climate risk is very different than classical financial economic risk. Radical uncertainty is amenable to scenario analysis and lack of data. Building special deterministic scenarios that go beyond NGFS requirements as well as bespoke scenarios. Holistic Approach to Climate Risk Modeling. Overview of different Climate Risk Modeling Applications. Use of ESG scenarios for Strategic Asset Allocation (SAA). Liquidity risk management.

Description: With higher interest rates and aging populations, the Bermuda offshore reinsurance market has been heating up, particularly to firms backed by asset management firms and private equity. Increased competition along with changing regulatory requirements, and evolving expectations around model governance have actuaries facing heavier production and results explanation workloads. This creates additional challenges on top of an already complex Bermuda reporting regime, particularly with the Scenarios-Based Approach (SBA) and Bermuda Solvency Capital Requirement (BSCR).

Description: Discussion of potential volatility to non-participating long-duration traditional contract reserves under US GAAP targeted improvements to accounting for long-duration insurance contracts. Discusses the impact of revising assumptions as well as interaction of revising assumptions with changes to discount rates.

Description: As the portion of inforce business valued under PBR grows, it becomes increasingly important to not only calculate reserves for point-in-time valuation but to also project reserves. This is especially critical for actuarial functions such as pricing, business strategy/forecasting, and asset adequacy testing. In this session, we will review PBR projection techniques based on work completed by the American Academy of Actuaries when developing the PBA Projection Practice Note. In addition, this session will examine specific challenges that can arise when actuaries use models to project reserves at future dates. Topics covered include mortality improvement, credibility, scenario generation, starting asset projections, and various other technical issues related to nested modeling requiring both inner and outer loop projections.

Description: This PBA Implementation Guide provides verbal summaries and visual flow chart overviews of various VM-20 and PBA components and requirements, six Case Study Road Maps, and action items to bridge the gaps and implement PBA. During the Guide’s development these templates and exercises were vetted with more than 15 participants selected from a diverse group of companies

Description: Read the December 2018 issue of The Financial Reporter, published by the Financial Reporting Section.

Description: The Society of Actuaries Smaller Insurance Company Section, the Financial Reporting Section, and the Committee on Life Insurance Research are pleased to make available new research investigating simplified methods for determining reserves under VM-20.

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: This article outlines how Bermuda advanced in global tax compliance through the enactment of the Bermuda Corporate Income Tax (CIT) Act of 2023, which will take effect for tax years beginning on or after January 1, 2025. The Bermuda CIT rules incorporate key foundational definitions from the Organization for Economic Cooperation and Development’s (OECD) Pillar Two GloBE model rules, while also exhibiting significant differences from Pillar Two. The article discusses the various elections available for taxpayers, key mechanics of the CIT, and the latest administrative guidance released by the Government of Bermuda.

Description: This article briefly summarizes the history of the Passive Foreign Investment Company (PFIC) tax regime. Then it provides a detailed description of the PFIC proposed regulations issued in July of 2019.