Description: Summarizes the Section's sponsored 2011 Annual Meeting sessions: business meeting, receptions and 3 programs - 'IFRS: The Future of Accounting for Insurance and its Implications', 'Where Enterprise Risk Management Meets Capital Management' and 'Managing Longevity and Mortality Risks and their Global Activities', plus some non-technical sessions on successful retirement.

Description: The September 2014 Issue of the Financial Reporting Section's newsletter, The Financial Reporter

Description: Risk management techniques such as stress testing and setting capital targets are fairly well established for life insurers; however, the implementation of these techniques can vary considerably. A fundamental question is how to manage multiple valuation perspectives, and the list of possibilities keeps growing. Companies can potentially consider some or all of the following: U.S. reporting measures (Stat, GAAP), internal measures (EV, VNB, economic capital), international reporting measures (IFRS), rating agency models or other developing standards (ICS, NAIC group capital). This session will begin with a quick overview of the defining characteristics of different valuation frameworks. We will then provide more focused and practical considerations for managing risk and capital under different frameworks, using specific examples to highlight key trade offs.

Description: The International Association of Insurance Supervisors (IAIS) continues its development of the Insurance Capital Standard (ICS) with the introduction of ICS 1.0 in summer 2017 and plans for ICS 2.0 in 2019. This session will provide updates on the development of the standards and summarize insights from Field Testing and ICS Consultations. This session will deliver an overview of the framework and provide industry and regulatory perspectives on potential implications and next steps.

Description: This paper provides a novel approach to the valuation of the market value of economic surplus that is stable and immune from “market noise”.

Description: The management of the investments of an insurance enterprise has undergone a considerable evolution since the pioneering work of Redington in the mid 20th century. Best practices have evolved to incorporate ever more complex insurance liabilities, expanding investment asset classes and global market opportunities. Strategic asset allocation (SAA), liability driven investing, and other robust optimization approaches form the core of the professional management of insurance company investments.

Description: Feature article discussing the IASB’s and FASB’s introduction of the use of other comprehensive income (OCI) to report certain changes in the value of insurance contracts.

Description: The article provides a summary of the Drake Risk & Opportunity Forum held on October 21, 2022. The forum was a hybrid conference that attracted more than 200 attendees from 17 states, two countries, 48 employers, and five universities. Following an introduction by the Zimpleman College of Business Dean, the forum held six sessions. First was an insurance company CRO panel followed by a panel of non-insurance company CROs. Gary Zhu shared his outlook for interest rates and capital markets. The fourth panel discussed insurance capital models. The fifth panel discussed environmental, social, and governance (ESG) criteria when building insurance company investment portfolios. The final session of the day was a discussion about the NAIC, how they operate, and their priorities for the coming year.

Description: This article discusses a good way for insurance companies to calibrate economic capital (tail risk level) that is consistent with the market opinion on its risk. It also establishes a bridge between a risk neutral evaluation and a real world evaluation.

Description: This monograph was presented at the 2011 Enterprise Risk Management Symposium, held March 14-16 in Chicago. The author, writing from a property-liability insurance perspective, notes that capital allocation is a theoretical exercise because all of a firm’s capital could be depleted to cover a significant loss arising from any one segment. However, firms do need to allocate capital for pricing, risk management and performance evaluation. In this paper, the cost of capital in financial markets is incorporated into the Ruhm-Mango-Kreps algorithm to yield one allocation that reflects the true cost of capital an insurer would face. Table only.