Statutory Life and Annuity Issues

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Overview

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At this session, experts will provide an overview of current statutory valuation issues pertaining to life and annuity products. The focus is on activities of the American Academy of Actuaries relative to principle-based approaches, but other matters will be covered, including the status of the NAIC valuation manual, life risk-based capital, developments at the NAIC affecting life insurance companies, and practice issues for appointed actuaries

Agenda and Speakers

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Moderator: Thomas A. Campbell, FSA, CERA, MAAA

Presenters: Donna R. Claire, FSA, CERA, MAAA; Thomas A. Campbell, FSA, CERA, MAAA; David E. Neve, FSA, CERA, MAAA

Your One Stop Guide to all Principle-Based Reporting

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Overview

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The valuation manual is a living document that continues to evolve. As more companies adopt Principle-Based Reserving (PBR) and file PBR Actuarial Reports, regulators have observed gaps and inconsistencies across the industry. As a result, PBR reporting requirements (VM-31) have expanded significantly in 2020 and still continue to evolve. This session will provide attendees with everything they need to fill out their PBR reports for both Life business and Variable Annuity business. We will dig into the new changes effective for 2020 reporting and approved changes for 2021, and compare and contrast the Life and VA requirements to help companies identify areas that can be leveraged between the two. In addition, we will share insights from regulators, consultants, and company actuaries on what to include or exclude in your report.

Agenda and Speakers

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Moderator: Angela McShane, FSA, CERA, MAAA

Presenters: Angela McShane, FSA, CERA, MAAA; Benjamin Slutsker, FSA, MAAA; Rachel C. Hemphill, FSA, MAAA, FCAS

IFRS 17: End of the World or the Beginning?

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Overview

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The IASB's new standard, IFRS 17, is a significant shift in accounting for insurance companies around the world. The presenters will summarize final changes to the IFRS 17 standard and their impact on implementation as parallel runs and the transition period draws near. Many companies are heads down on their implementation journey and haven't begun to think about what happens once IFRS 17 goes live, what the business implications are, and new Key Performance Indicators for steering the business. The presenters will shine light on these unknowns and will also discuss how IFRS 17 will change the role of the actuary and how actuaries can begin preparing for those changes now.

Agenda and Speakers

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Moderator: Kelley M. Weiss, FSA

Presenters: Kyle Stolarz, FSA, MAAA; Rodrigo Careaga, ASA, MAAA; Kelley M. Weiss, FSA

Modeling techniques: PBR and Beyond

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Overview

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The optional phase-in period for life principle-based reserves (PBR) has come to a close, and companies have put in the work to bring their PBR implementations across the finish line. With the mandatory PBR implementation deadline behind them, companies can turn their attention from compliance to model and process improvements. The presenters will outline lessons learned from PBR implementations and their applications to broader use cases, as well as resources that are available for PBR modelers. Discussion topics will include items such as: Model simplifications and validation Model run-time techniques Model scalability (e.g. adding new products / future assumption updates) Sensitivity testing Model projections Available PBR & other modeling resources (e.g. PBR practice note, ASOP 56)

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Moderator: 

Presenters: Bill Cember, FSA, MAAA; Reanna M. Nicholsen, FSA, MAAA; Kathryn M. van Ryn, FSA, MAAA

Principle-Based Reserve Projection Questions, Answered!

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Overview

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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.

Agenda and Speakers

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Moderator: Dylan Strother, FSA, MAAA

Presenters: Dylan Strother, FSA, MAAA; Benjamin Slutsker, FSA, MAAA; Kevin Piotrowski, FSA, CERA, MAAA

IFRS 17: How May Future KPIs Look Like?

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Overview

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Key performance indicators (KPIs) are essential in order to monitor and communicate a life insurance companies’ financial results, and effectively manage the business. This presentation will illustrate how the currently used KPIs may develop and evolve with the adoption and implementation of IFRS 17. Will the IFRS 17 insurance revenue be an appropriate measure for growth? Will the profitability and new business value measures be different? The panelists will discuss the implications of IFRS 17 on the existing KPIs and the possible changes that may lay ahead.

Agenda and Speakers

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Moderator: Dan Kim, FSA, CERA, MAAA

Presenters: Dan Kim, FSA, CERA, MAAA; Ralph M. Ovsec, FSA, FCIA, MAAA; Thorsten Wagner

Improving, Automating, and Optimizing Actuarial Processes

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Overview

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Computer processing power has improved exponentially over the last few decades. So why haven’t these improvements translated to shorter monthly and quarterly close cycles? Convoluted processes resulting from legacy and manual processes along with complex data mapping requires days, if not weeks, of preparation to report financial results. Much of this time is spent on activities like fixing errors and tweaking processes rather than on analyzing results and transforming outputs into meaningful, forward-looking insights. Imagine a world of on-demand results - what would you do with all that information and available resource time? This session will introduce the audience to data and process issues facing insurers and provide insights to overcoming them through process optimization and automation. The presenters will also walk through solutions available in the market and real-life case studies related to automation and process improvement.

Agenda and Speakers

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Moderator: Ramandeep Nagi, FSA, FCIA, MAAA

Presenters: Eric J. Forfa, FSA, MAAA; Benjamin C. Fanrsworth, FSA, CERA, MAAA; John Johansen

Mortality under PBR: Deep Dive on Emerging Topics

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The margin on the mortality assumption is largely prescribed and represents the largest source of margin in principles-based reserves for most writers. This is causing both reinsurers and direct writers to sharpen their pencils when setting their anticipated experience assumption, as well as discretionary elements of associated margin. In this session, the presenters will share best practices and considerations on setting mortality in a PBR context, including but not limited to: Emerging topics and trends in mortality Simplified Issue / Fully Accelerated Underwriting mortality (how to set company and industry mortality when guidance is not available) Mortality segments (how are they defined and developed) Relative Risk tool use (extent of use and output adjustments) Historical mortality improvement on 2015 VBT (standardization of approach) Documentation/disclosure (what regulators are looking for)

Agenda and Speakers

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Moderator: Serena K. Chao, FSA, MAAA

Presenters: Mary J. Bahna-Nolan, FSA, CERA,MAAA; Rachel C. Hemphill, FSA, MAAA, FCAS; Timothy C. Cardinal, FSA, CERA, MAAA; Nina Han, FSA, CERA, MAAA

IFRS 17 Implementation for a Variable Annuity (VA) Reinsurer with a Focus on Hedging

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Overview

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Agenda and Speakers

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Moderator: Yang Jing, FSA, MAAA

Presenters: Yang Jing, FSA, MAAA; Joshua Dobiac

Raising the Bar on Model Validation

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Overview

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With many complex regulatory changes on the horizon as well as pressures to ensure model accuracy from auditors, regulatory requirements and new actuarial standards of practice, the importance of robust model validation is coming to the forefront of actuaries’ minds. What was previously a day-two task for many companies is becoming just as important as model development! In this session, you will hear from those that have been deeply involved in building model validation frameworks and tools in responses to regulatory changes GAAP Long Duration Targeted Improvements (“LDTI”) and Principles Based Reserves (“PBR”).

Agenda and Speakers

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Moderator: Dylan Strother, FSA, MAAA

Presenters: Paul Chen, FSA, MAAA; Patrick Davidson, ASA, CERA