2020 Valuation Actuary Symposium - September 1

Concurrent Sessions 4 9:00 a.m. – 10:15 a.m. CT/10:00 a.m. – 11:15 a.m. ET

Life PBR and the Treatment of Reinsurance: Update and Insider Perspectives

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Overview

Regulators observed a wide range of practice from early adopters of PBR in regard to the treatment of non-guaranteed reinsurance and adopted a formulaic solution on an interim basis for the 2020 Valuation Manual. A field test, supplemented with additional analysis performed using a model-office approach with representative models, is being performed over the first half of 2020 to inform regulators as they select a longer-term solution. This session will provide an update on this important issue as well as perspectives on how the resolution of this issue was approached and lessons learned for the future from those intimately involved in this work.


Agenda and Speakers

Moderator: Chris Whitney, FSA, MAAA

Presenters: Jason E. Kehrberg, FSA, MAAA; Scott O'Neal, FSA, MAAA; Chris Whitney, FSA, MAAA


Negotiation at Work

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Overview

Negotiation - it's not just for buying a car! Actuaries negotiate every day at work, whether it's getting buy-in to change a critical assumption or a more reasonable timeline to complete a project. This workshop will be led by an instructor specializing in executive education and will offer techniques you can use to be more effective in your day-to-day life.


Agenda and Speakers

Moderator: Kelly J. Rabin, FSA, MAAA

Presenters: Kelly J. Rabin, FSA, MAAA; Megan Guy


Mortality Improvement Practices and Future Projection Modeling

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Overview

Future mortality improvement is an important assumption in the valuation of life insurance and annuities. In this session, presenters will discuss the work of the Mortality Improvement subgroup of the American Academy of Actuaries’ Life Experience Committee and the Society of Actuaries’ Preferred Mortality Oversight Group Valuation Basic Table Team in developing mortality improvement scales for AG-38 and VM-20. In addition, two recent SOA efforts on mortality improvement will be examined. Research on developing a broader framework for modeling mortality improvement assumptions is being developed to enable U.S. actuaries additional ways to follow a consistent approach across a variety of actuarial practice applications. Results from a study on U.S. population mortality by socioeconomic category and how it fits into the broader consistent framework will be presented. Additionally, results of a survey on mortality improvement practices of life insurance companies and reinsurers in Canada and the U.S. will be shared.


Agenda and Speakers

Moderator: Larry N. Stern, FSA, MAAA

Presenters: Larry N. Stern, FSA, MAAA; Constance Dewar, FSA, FCIA; Marianne Purushotham, FSA, MAAA

Concurrent Sessions 5 10:45 a.m – 12:00 p.m. CT/11:45 a.m – 1:00 p.m. ET

Annuity Principles-based Reserving (“PBR”) Update

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Overview

There has been significant discussion of PBR for Life Insurance, but there have also been significant changes in PBR for annuities recently; including VM-21, VM-22, and future VM-23. This session will discuss recent changes in PBR for annuities as well as what the future may hold.


Agenda and Speakers

Moderator: Nicholas E. Carbo, FSA, MAAA

Presenters: Nicholas E. Carbo, FSA, MAAA


LDTI Impact on Your Auditors: What'll They be Asking for?

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Overview

FASB’s Targeted Improvements to the Accounting for Long-Duration Contracts (“LDTI”) will have vast impacts on insurance company data requirements and processing, actuarial modeling, and financial reporting. While many insurers are busy working to assess the implications of and implement the new accounting standard, its impact on internal controls and external audits can be overlooked. The lack of attention to the control environment and framework throughout the LDTI implementation, coupled with increased scrutiny from external auditors and regulatory authorities (e.g., PCAOB) once LDTI becomes effective, could possibly result in significant deficiencies and material weaknesses in controls. As insurers are facing continuous regulatory changes beyond just LDTI, they must be proactive in ensuring that their control environment and framework is effective, mature, and adaptable to changes.


Agenda and Speakers

Moderator: Michael Hayes, FSA, MAAA

Presenters: Michael Hayes, FSA, MAAA; Robert A. Hanes, FSA, MAAA


The Human Element of Modernization

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Overview

The insurance industry is in a constant state of transformation. As organizations adapt to the effects of COVID-19, undergo modernization efforts and implement new technologies, soft or “human” skills are becoming key differentiators for success. Skills such as communication, empathy, storytelling, leadership, problem-solving and more are separating the good from the great actuaries. Those who possess these skillsets can better translate data and most efficiently leverage systems and teams. At the same time, by taking a human approach to modernization efforts, leaders will be able to best engage and motivate their workforces, while building teams that will excel in the future of work.


Agenda and Speakers

Moderator: Chad Record, ALMI

Presenters: Chad Record, ALMI; Kelly Hennigan, FSA, CFA; Elizabeth Dietrich, FSA, CERA, MAAA; Matthew J. Wininger, FSA, MAAA

Concurrent Sessions 6 12:45 p.m – 2:00 p.m. CT/1:45 p.m – 3:00 p.m. ET

Non-Variable Annuity PBR and Statutory Reserving Updates

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Overview

The American Academy of Actuaries will present on current initiatives that impact the U.S. statutory reserving methodology for non-variable annuity contracts. In particular, the development of a principle-based reserving framework on non-variable annuity contracts will be discussed, including framework elements, assumptions, and methodology. The session will provide an update on the status of regulatory discussions and the timeline for future changes to reserves. By the end of the session, attendees will understand what changes are being made to non-variable annuity reserves, details underlying existing proposals, and the anticipated timing of such emerging changes. This session is intended to the meet the needs of actuaries focused on annuity reserve calculations, financial reporting, and valuation.


Agenda and Speakers

Moderator: Jason E. Kehrberg, FSA, MAAA

Presenters: John Miller, FSA, MAAA; Chris Conrad, FSA, MAAA; Benjamin M. Slutsker, FSA, MAAA


LDTI Data Requirements and Disclosures

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Overview

LDTI will have a substantial impact on insurer’s data and information needs, particularly those required to comply with the enhanced disclosure requirements. This session will focus on those enhanced disclosure requirements, which are significantly expanded over current US GAAP, and will consider technical requirements, system, and modeling implications. It will provide industry insight as to how insurers are approaching the enhanced requirements as well as obtaining better insight into their business and key drivers of earnings.


Agenda and Speakers

Moderator: Gavin T. Stewart, FSA, MAAA

Presenters: Gavin T. Stewart, FSA, MAAA; Michael Hayes, FSA, MAAA; Steven Abel


Asset Modeling Best Practices in the Current Environment

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Overview

Asset cash flow modeling and asset assumptions are growing in importance with PBR especially considering the low interest rate environment. The Academy’s Life Practice Council and Life Valuation Committee have formed a Low Interest Rate Asset Adequacy Testing Task Force which has conducted an industry survey to raise awareness and summarize the actuarial best practices for financial reporting actuaries practicing in today’s very low interest rate environment. As the scrutiny on the asset side ratchets up, actuaries must consider how best to develop the asset assumptions as well as model the reinvestment and disinvestment strategies. Coherent assumptions and modeling practices across modeling exercises are expected while respecting the purpose of each calculation.


Agenda and Speakers

Moderator: Marc Altschull, FSA, MAAA

Presenters: Patrick Ledlee, FSA; Daniel Finn, FCAS; Frederick Jay Hill, FSA