Description: Overview of regulations and best practices for governance of PBR valuation processes, including standards, oversight, controls and review related to the PBR analysis

Description: An overview of John Robinson's experience at the recently concluded annual meeting of the Caribbean Actuarial Association in Trinidad.

Description: LDTI’s introduction has forced many insurers to examine their existing operations and technologies. They must determine how to optimize compliance efforts while balancing data, analytics and system modernization considerations to achieve maximum value. This article will examine the four key facets—the data, technology, processes, and people—essential to any successful LDTI exercise. It will also touch on the various approaches for tackling LDTI and how a modernization mindset can help insurers realize much greater transformation for the business.

Description: The paper discusses the role of a regulatory actuarial auditor, the risk focused examination process and the policyholder protection provided by the states, and the impact of varying state laws on the valuation process, and the importance of avoiding actuarial software becoming a black box. There is a discussion of the potential problems presented by the potential use of artificial intelligence, as well as suggestions for academic researchers to answer the pressing questions of whether artificial intelligence can potentially be used for valuation purposes.

Description: This article starts with the increasing attention that FP&A receives due to the implementation of new financial regimes and emphasizes the collaborative nature of FP&A. It then describes the roles that actuaries play in FP&A, the new demands for actuaries that we are observing, and suggests some best practices that we are seeing across the clients. This article targets to point out the new demands from FP&A on actuaries and provide some advice on how actuaries can do to meet these demands.

Description: The implementation of the IFRS 17 insurance accounting standard has brought significant changes to the financial reporting landscape of insurance companies. With new disclosure requirements and altered profit analysis, understanding and interpreting future profitability have become a topic of concern for the industry. While stability remains a key objective for insurance companies, the earning patterns might become more volatile especially when the contractual service margin (CSM) is exhausted, and a loss component (LC) needs to be established. Reinsurance, a common risk mitigation tool, can play a pivotal role in managing earnings volatility and minimizing losses for onerous measurement units. In this article, we propose a new key performance indicator (KPI) called “loss recoverability” to assess the performance of reinsurance treaties in achieving these objectives. We explain how this KPI can be utilized in multiple scenarios to evaluate the effectiveness of reinsurance strategies and pursue stability in earning patterns.

Description: Welcome to the May edition of The Financial Reporter! In her “Chairperson's Corner”, Joy Zhang highlights the section's upcoming activities for the year and ways for everyone to get engaged.

Description: A British actuaries perspective on what could happen should two reserve/accounting basis exist that could lead to reducing the strength of statutory accounting and perhaps the financial strength of North American insurance companies. Some might find similarities to what might happen during the transition to principles based statutory accounting.