Financial Reporting Research Update

By Isabelle Jung and Ronora Stryker

The Financial Reporter, January 2024

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Research is a primary mission of the Financial Reporting Section and a significant use of our section dues revenue. Here is an update, as of October 2023, on projects in process and those recently completed.

Currently In Process

"Adapting to A New Normal.” Examines how companies should adapt to a new baseline of high inflation, high volatility, geopolitical tension, and high climate risks. Research is continuing for this project.

“17th Annual Emerging Risk Survey.” Work is underway on this survey that tracks risk managers’ thoughts on emerging risks across time identifying trends and examining the evolution of risk management practices. While waiting for the results, check out the report from last year’s survey at:  https://www.soa.org/resources/research-reports/2023/16th-survey-emerging-risks/.

“Living to 100.” This research initiative focuses on aging: Increase in survival rates and the resulting increase in aging populations, together with its implications to social, financial, retirement, and health care systems. It involves a symposium that was held in January 2023 and generates a lasting body of research to educate and aid individuals and policymakers in addressing the potential needs and services of the future advanced-age populations. This project is nearing completion with the online compendium of research papers presented at the event expected to be released in November.

“2023 Update of Mortality by Socioeconomic Category.” In the past few years, the Financial Reporting Section has funded several studies that examine U.S. population socioeconomic inequalities in mortality. This project updates past studies with data through 2021 and examines the impact of COVID-19 on these mortality trends. This project is nearing completion.

Recently Completed

"Rating Agency Perspectives on Insurance Company Capital.” This study investigates and documents the approach rating agencies take to assessing insurance companies’ capital. https://www.soa.org/resources/research-reports/2023/ratingagency-perspectives-insurancecompany-capital/

“Credit Insurance Disability Experience Study.” The project updates the 2014 experience study. This study was undertaken to ensure the ongoing adequacy of the modified 1985 CIDA table as specified in Valuation Manual Section VM-26 for single premium credit disability insurance. In addition, the shift in the distribution of sales by term between contracts issued in previous study periods to 2017 and 2021 was analyzed. https://www.soa.org/resources/research-reports/2023/credit-disability-update-2014/

“Mortality Improvement Trend Analysis.” Using proprietary U.S. census data, this research examines the key drivers of mortality improvement and how they vary. https://www.soa.org/resources/research-reports/2022/mortality-improvement-trends/

“Cause of Death Mortality by Socioeconomic Category in the United States.” This study seeks to identify the particular causes of death contributing to the growing disadvantage in mortality between the least and most affluent U.S. populations. https://www.soa.org/resources/research-reports/2022/cause-of-death-socioeconomic/

“Mortality by Socioeconomic Category in the United States.” The purpose of this study is to construct a set of life tables for groups of counties based on their relative socioeconomic position. https://www.soa.org/resources/research-reports/2020/us-mort-rate-socioeconomic/

“Delphi Study of Economic Variables.” This study uses a Delphi Study framework to gather insights on the thought processes experts employ to estimate future values of economic variables. https://www.soa.org/resources/research-reports/2020/real-time-delphi-study/

“Simplified Methods for Principle-Based Reserve Calculations.” This project investigates a simplified approach for determining principle-based reserves. https://www.soa.org/resources/research-reports/2020/simplified-methods/

“Macroeconomics-Based Economic Scenario Generation.” This project seeks a practical way to improve economic scenario generators by studying the causes of economic development, economic volatility and capital market volatility. https://www.soa.org/resources/research-reports/2020/macroeconomics-based-esg/

“Simplified Issue Underwriting.” This research explores the application of simplified issue underwriting in the life insurance industry. Among the areas studied are the definition, developments, characteristics, challenges, current practices, assumptions, and data elements for simplified underwriting. https://www.soa.org/resources/research-reports/2020/simplified-issue-underwriting/

Request for Research Proposals

Do you have an idea for a research topic you would like to see the Financial Reporting Section consider for funding? If so, we want to hear from you! For more information, please contact Isabelle Jung or Ronora Stryker.

Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries, the newsletter editors, or the respective authors’ employers.


Isabelle Jung, FSA, is a member of the Financial Reporting Section Council. She can be reached at yi.isabelle.jung@ey.com.

Ronora Stryker, ASA, MAAA, is a research actuary for the Society of Actuaries. She can be reached at rstryker@soa.org.