Description: In an effort to build a bridge between epidemiological and actuarial modeling, this paper analyzes possible financial arrangements made against expenses resulted from medical treatments given to insured patients. Based on classical compartment models, the first part of this paper designs insurance policies for susceptible participants facing the risk of infection and formulates the financial obligations of both parties using actuarial methodology. For practical purposes, the second part employs a variety of numerical methods for calculating premiums and reserves. The last part illustrates the methods by designing insurance products for the Great Plague in Eyam and the SARS Epidemic in Hong Kong.

Description: The article highlights key considerations as companies begin to reserve for their IUL products under PBR.

Description: The author uses a reprint of an article from the very first edition of the “News from the Individual Life Insurance and Annuity Product Development Section” and assistance from the Taxation Section Council and Friends of that Council to decipher the changes between the life insurance tax environment back in the 1980s compared to today.

Description: In physics and engineering education, Fermi problems require solutions based on good approximate calculations with little or no actual data, involving making justified guesses and deducing bounds without using sophisticated tools. The idea of Fermi problems are of particular relevance to today's actuaries, as pricing, reserving, and financial reporting involve more and more complex stochastic components. The paper discusses some approximate solutions developed in academia in the spirit of Fermi problems.

Description: Chairperson’s column discussing the recent activities of the SOA’s Reinsurance Section.

Description: Feature article describing a simple and ready solution that allows a hedging program to operate effectively without risk of mismatch due to mortality fluctuations.

Description: discussion of a LIMRA survey on the quantity and types of recent product development efforts of life insurance companies and the considerations driving these efforts

Description: Feature article describing how the Society of Actuaries (SOA) partnered with the Association of Home Office Underwriters (AHOU) and the Canadian Institute of Underwriters to conduct research focused on new medical tests and markers that may have significance and relevance to the life insurance markets to get a sense of where underwriting practices are going in the future.

Description: This article delves into a new line of statistical thinking of the author, that may be useful for product development actuaries. The key concept is how product design can produce products that diversify quickly, meaning that the company can be confident of a profitable product line, based on fewer sales than might be true for other designs.

Description: Feature article describing the events of the recent 2012 ReFocus meeting.