Description: Applications of Stress Testing

Description: Response to David Kausch’s comments on the paper.

Description: The selection of the economic capital calculation approach becomes more of a modeling decision. Now let us pause here and think about the arbitrage-free assumption at the beginning. At any time, there can be only one price on any asset. If the company considers the price calculated above as the fair price for its products, then it must hold true that the same price has to be arrived at if the company uses a real-world pricing approach instead of a risk-neutral approach. This gives us a very good basis to calibrate the appro- priate economic capital.

Description: An overview of reinsurance training class provided to the Bermuda Monetary Authority (Authority) and Central Bank of Trinidad and Tobago (Central Bank) covering all aspects of reinsurance. Article also provides an overview of initiatives that the two regulators (Authority and Central Bank) are involved with.

Description: Many top-performing businesses aren’t just risk aware, but rather risk intelligent. Such a posture helps prepare companies for a major event and can demonstrate to a regulator or auditor that an appropriately strong control framework is in place. Better still, companies gain real strategic value from a “risk adjusted” understanding not only of their threats and vulnerabilities, but also the upside opportunities associated with various risks. It starts with having both qualitative and quantitative information to identify, assess and manage risks. Strategic risk management, at its core, is about creating value by increasing transparency and accountability, and quality of information. More than a mere compliance exercise, effective risk management enables more informed strategic decision making, increased accountability and transparency, a greater likelihood of organizational success, and – ultimately – competitive advantage, as borne out by many studies that correlate risk management and financial results.

Description: State regulators' review of predominant LTC Risks after review of year-end AG51 reports.

Description: Comments on Robert North’s paper, a real case study of disclosing MVL in a public employee retirement system.

Description: The five words for ERM are transparency, discipline, alignment, adaptability and resilience. This article focuses on transparency, discipline and resilience.

Description: A response to the comments on the paper.

Description: An insurance company selling LTCI today would do far better to address some important financial needs by taking the aspirin of improving modeling and pricing, and not the morphine of shutting down the business line entirely. The aspirin can consist of two strategies: First, integrate the projections of the asset portfolio and the claims liabilities when testing the sensitivity of assumptions or stochastically modeling the product. Second, establish a separate asset portfolio for LTCI products, and make sure it has a strong, well-defined, well-documented Investment Policy Statement. An Investment Policy Statement will enable pricing actuaries and investment departments to work together with the same goals and objectives.