Description: Summary of SOA research report "Optimizing Risk Retention" which applies parametric survival models and Monte Carlo simulation to a block of term life business.

Description: Discussion of the biases understatement of risk/reserves that arise when aggregating cells in modeling Variable Annuity Minimum Guaranteed Death Benefits

Description: More Efficient Monte Carlo Simulations for Mortality Assumption Testing

Description: This is the first year for appointed actuaries in the United States ot review X factors and evaluate actual morality experience that is emerging. This article atempts to provide a simpified explanation of how Monte Carlo simulation can be used by a small company to evaluate its mortality experience.

Description: According to the Actuarial Standards Board’s Actuarial Standard of Practice No. 49 (ASOP 49), actuarially sound Medicaid managed care capitation rates will include a provision for underwriting gain in order to provide compensation for the risks assumed by an MCO. However, there is no generally accepted method for quantifying underwriting gain in managed Medicaid capitation rates. This article discusses a new model developed to address this void and calculate underwriting gain. The model was developed by researching existing financial literature and performing a statistical analysis of industry data to build out a framework that can be leveraged to estimate underwriting gain.

Description: Actuaries understand the technical benefits of converting their models to a modern actuarial system, such as new capabilities and upgraded technology. This article highlights additional, non-technical benefits that also come with model conversion. These benefits include advancements in attitudes and capacities among the team and across the company.

Description: The article warns against treating the results of a stochastic model with more deference than other actuarial analysis, and describes some hidden risks involved with choice of model and calibration.

Description: A recent Society of Actuaries study calculates safety and stability for current Long Term Care Insurance premiums.