The Actuary Magazine

72 Pages·2015·13.2 MB·English

THE
DEC 15
JAN 16
20 NAVIGATING THE
CHANGING LANDSCAPE
Exploring the applications of economic
capital models in multinational reinsurance
2 8
PROTECTING
BRADLEY
Making life insurance more
relevant to millennials
38 THE TRUE COST OF COVERAGE
Understanding the impact of ACA subsidies on individual rates
52 BUILDING AN INCLUSIVE
WORK ENVIRONMENT
Why diversity matters to the actuarial profession in the
United States
56 PREDICTIVE PIONEER
Q&A with Ian Duncan, professor of actuarial science
We’re interested
in the person
behind the paper,
because we don’t
submit resumes,
we present people.
let us get to know you. A phone
call today is the best career
move you can make, even if you
aren’t looking right now.
R
ActuAriAl cAreers, inc.®
Westchester Financial Center
11 Martine Avenue, 9th Floor
White Plains, NY 10606
Tel: [phone] / Toll Free: 800-766-0070
Fax: [phone]
E-mail: [email protected]
www.actuarialcareers.com
THE
DEC 15
JAN 16
20 28 38 52
20 NAVIGATING THE
CHANGING LANDSCAPE
Exploring the applications of economic capital
models in multinational reinsurance
By Clint Thompson
FEATURES
28 PROTECTING BRADLEY
Life insurers can do a better job of making
life insurance more relevant to millennials
By Stephen Abrokwah
38 THE TRUE COST OF COVERAGE
Understanding the impact of
ACA subsidies on individual rates
By Greg Fann
52 BUILDING AN INCLUSIVE
WORK ENVIRONMENT
Why diversity matters to the actuarial
profession in the United States
By Linda Shepherd and Kwame Davis
56 PREDICTIVE PIONEER
Q&A with Ian Duncan, professor of actuarial science
The Actuary welcomes both solicited and unsolicited submissions. The editors reserve the right to accept, reject or request changes to solicited and unsolicited submissions, as well as edit articles for length, basic syntax,
grammar, spelling and punctuation. The Actuary is copyedited according to Associated Press (AP) style. For more information about submitting an article, please contact Jacque Kirkwood, magazine staff editor, at
[phone], [email protected] or Society of Actuaries, 475 N. Martingale Rd., Suite 600, Schaumburg, IL 60173-2226. Copyright © 2015 Society of Actuaries. All rights reserved. No part of this publication may be
reproduced in any form without the express written permission of the Society of Actuaries.
SOA PRESIDENT CREATIVE SERVICES
Be sure to visit our digital edition Craig W. Reynolds
at SOA.org/actuarymag. FSA, MAAA
[email protected]
SOA STAFF CONTACTS
Patrick Gould The Actuary is published bimonthly (February, April, June,
Managing Director of August, October, December) by the Society of Actuaries, 475
Marketing & Communications N. Martingale Rd., Suite 600, Schaumburg, IL 60173-2226.
[email protected] Periodicals postage paid at Schaumburg, IL, and additional
mailing offices. USPS #022-627.
Cheré LaRose
Director of Member & This publication is provided for informational and educational
Candidate Communications purposes only. The Society of Actuaries makes no endorse-
[email protected] ment, representation or guarantee with regard to any content,
and disclaims any liability in connection with the use or
Julia Anderson Bauer misuse of any information provided herein. This publication
Publications Manager should not be construed as professional or financial advice.
[email protected] Statements of fact and opinions expressed herein are those
of the individual authors and are not necessarily those of the
Jacque Kirkwood Society of Actuaries.
Magazine Staff Editor
[email protected] The Actuary is free to members of the Society of Actuaries.
Nonmember subscriptions: students $22; North American $43;
Int’l $64.50. Please send subscription requests to: Society of
Actuaries, P.O. Box 95600, Chicago, IL 60694-5600.
CONTRIBUTING EDITORS
16 64
Richard Berger, FSA, EA, MAAA Albert Moore, ASA, MAAA
[email protected] [email protected]
Mark Birdsall, FSA, FCA, MAAA Jeffrey Schuman, FSA, MAAA
[email protected] [email protected]
Alan Cooke, FSA, FCIA, MAAA Lloyd Spencer, FSA, CERA, MAAA
[email protected] [email protected]
Carl Hansen, FSA, EA, FCA, MAAA Karin Swenson-Moore, FSA, MAAA
[email protected] [email protected]
Christine Hofbeck, FSA, MAAA Ksenia Whittal, FSA, MAAA
[email protected] [email protected]
Larry Zhao, FSA, CERA
[email protected]
DEPARTMENTS
6 EDITORIAL A Time for Reflection
10 FROM THE PRESIDENT Five Essential Ideas for 2016
14 AROUND THE GLOBE The Latest Changes: A roundup of events in the international community
16 NEW & NOTEWORTHY What’s Happening: Your source for industry briefings and SOA news
62 TOOLBOX Room for Improvement: Useful tools and resources for actuaries
64 INNOVATE System Upgrade: Changes to the IAA syllabus result in updates to the SOA education system
68 RESEARCH Interest Rates, Risk Scenarios (and New Opportunities)
70 TAKE CHARGE Get information on professional development opportunities
ADVERTISING INFORMATION
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should be directed to: 2 West Taunton Avenue
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Phone: [phone]
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Department, 475 N. Martingale Rd., Suite 600, Schaumburg, IL 60173-2226. Email: [email protected]
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EDITORIAL
A time for
reflection
BY KARIN SWENSON-MOORE
W ith this issue, I conclude my two-
year term as a contributing editor
for The Actuary. I also recently
finished a three-year term on
the Society of Actuaries (SOA)
Leadership & Development (previously Management &
Karin Swenson-Moore is director, Personal Development) Section Council. I learned and
Actuarial, at Cambia Health Solutions grew professionally and personally from both of these
in Seattle. experiences, and I am now considering new ways to
contribute to the actuarial profession.
[email protected]
When I was recruited for the contributing editorial
board, I hadn’t thought much about the process of
creating The Actuary, or how it might benefit me. Here
are some of the expected, and unexpected, pleasures of
being a contributing editor for The Actuary:
➊| Expanding your network to include other contrib-
uting editors working in disciplines outside your
own expertise. The editorial board is diverse in
experience, location and expertise. I was acquainted
with exactly one other person (by coincidence) when
I joined the board, but now have friends from many
disciplines whom I look forward to seeing at SOA
events or contacting with a question outside of my
health actuarial specialty.
6 The Actuary theactuarymagazine.com
Opening
Doors for
Actuaries
Globally
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Integrity, confi dentiality, objective assessments
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EDITORIAL
➋|D eveloping editing and constructive feedback ➎| Reading and learning more outside of your
skills. A key role for contributing editors is to review specialty. Before joining the editorial board, I tended
every submitted article for content and provide feed- to focus on readings that directly affected me as a
back to the authors. Reading and editing the work of health actuary in a management role. Making time
others has improved my own writing skills by sharpen- to review submitted articles on varied topics has
ing my eye to length, style and rhythm of writing. It’s increased my awareness of the entire profession and
not easy to provide meaningful (and tactful) written makes me think more about using that information
feedback to someone you may not know, but it’s in my health actuarial work.
rewarding when that feedback results in an improved
article. (That review also sometimes creates some ➏| Learning more about the behind-the-scenes
lively email discussions among the editorial board, work by the SOA staff. Putting together a bimonthly
with more opportunities for sharing opinions in a magazine is a lot of work, and deadlines approach
constructive manner.) quickly. I have a new appreciation for the staff’s
support for the SOA membership.
➌|T hinking more globally about the interests of the
SOA membership. During my time on the editorial My volunteer status change opens opportunities for
board, we have adjusted our model to determine a someone else. Maybe that someone is you. I hope you’ll
broad theme for each issue, and to designate a contrib- consider how you can learn and grow by contributing to
uting editor (or two) to lead the content development The Actuary and to the actuarial profession. Send your
for that issue. The editorial board and SOA staff work article ideas to [email protected].
together to develop the calendar and themes to reflect Thanks to all who provided me with the opportunities
current interests and topics that are meaningful to to contribute and grow over the past two years in this
a broad section of our membership. We also try to role. Please enjoy this issue.
include sufficient context within articles to allow the
less-expert actuarial reader to follow, while still engag-
ing those with greater subject-matter knowledge. I’m
more sensitive to the broad interest base of the SOA
now, in particular our growing number of interna-
tional members.
➍|D eveloping “influencing without authority” skills.
A contributing editor has no ability to force a volun-
teer writer to do anything, and it can be difficult to
find contributors. Last year, I worked with another
editor to compile an article with comments from
health actuaries about their experiences implement-
ing the Affordable Care Act. Initially, I thought the
survey responses would flood my inbox. However, that
was not the case, and I had to spend more time than
expected following up with potential responders in my
network, addressing their concerns about the article
and providing extra time to respond. Fortunately, the
extra effort and networking resulted in many helpful
and interesting contributions. After giving responders
a chance to review the compiled article, the article was Send your article ideas to
[email protected].
completed on time.
8 The Actuary theactuarymagazine.com
Ezra Penland has you covered!
SEND RESUMES TO [email protected]
CALIFORNIA - HEALTH CONSULTING ACTUARY CONNECTICUT - LIFE ACTUARY / MODELING SKILLS
California consulting firm seeks a health FSA or near-FSA actu- Connecticut client is searching for a life actuary with financial
ary for Position 66867. Must have 5 to 12 years of healthcare modeling experience and consulting experience for Position
actuarial experience. A strong understanding of health reform is 67232. FSA or ASA or CFA credentials required. Outstanding
required, as are outstanding communications skills. communications skills are a must.
ARIZONA - DIRECTOR OF HEALTH ACTUARIAL SERVICES SOUTHEAST USA - INDIVIDUAL LIFE MODELING
Director of Actuarial Services at the FSA level is needed by ASA or FSA individual life modeling actuary is immediately sought
an Arizona health insurer for Position 67095. Management by a Southeast USA insurer for Position 67013. 5 to 12 years of
experience ideal. Pricing, reserving, contract analysis and life actuarial experience, including some AXIS software experi-
financial forecasting skills preferred. Must have 10+ years of ence, ideal.
health actuarial experience. ILLINOIS - RECENTLY-CREDENTIALED LIFE FSA
For Position 66776, a recently-credentialed FSA life actuary is
NORTHEAST USA - HEALTH ACTUARY / MEDICAL ECONOMICS
sought in Chicago. Must have asset/liability modeling or risk man-
Health actuary and medical economics professional is needed by
agement or valuation experience. Some travel.
a Northeast USA insurer for Position 67135. FSA or ASA sought.
Manage small staff. Management reporting, cost trend analysis, TEXAS - FINANCIAL RISK MANAGEMENT
financial forecasting, pricing and other assignments. For Position 67211, a financial risk management actuary is
sought by a Texas insurer. FSA with 7 to 20 years of actuarial and
SOUTHEAST USA - HEALTH ACTUARIAL MANAGER
financial experience ideal.
Prominent Southeast USA health insurer intends to hire an Actu-
arial Services Manager for Position 67082. FSA with 10+ years NORTHEAST USA - FELLOW ACTUARY
of experience is immediately sought. For Position 66779, a Northeast USA client is looking to hire life
actuaries with strong financial software skills, such as MG-ALFA
KANSAS - HEALTH ACTUARY
or AXIS or PolySystems or Prophet. New or recently-credential
Unique national organization has asked Ezra Penland to find a
FSA life actuary preferred.
health actuary in Kansas at the ASA or FSA level for Position
66667. Requires advanced statistical analysis skills. SAS or R SOUTHEAST USA - ANNUITIES PRODUCT DEVELOPMENT
programming expertise preferred. For Position 67162, an annuities product development actuary is
needed by a Southeast USA insurer. ASA or FSA with 7+ years of
ILLINOIS - MEDICAID OR MEDICARE EXPERIENCE life and annuity actuarial experience preferred.
Health actuary with Medicare or Medicaid experience is being
MASSACHUSETTS - LIFE ACTUARY / MODELING SKILLS
sought by a Chicago consulting firm for Position 67142. FSA or
Massachusetts insurer now seeks a life actuary with modeling
ASA credentials required. Consulting experience not required.
skills for Position 67147. FSA or ASA with 6 to 15 years of life
Management experience a must.
actuarial experience preferred.
MASSACHUSETTS - HEALTH ASA/NEAR-ASA
WISCONSIN - LIFE ACTUARY
ASA health actuary or near-ASA senior healthcare actuarial ana-
For Position 66943, our Milwaukee client seeks a life actuary
lyst needed by Boston insurer for Position 67165. Must have 5+
with 3 to 10 years of experience. FSA or ASA or near-ASA pre-
years of health actuarial experience. Contract analysis, financial
ferred. Self-starters wanted. Must have SQL programming skills.
forecasting, trend studies, reserve analysis, pricing and medical
Modeling expertise required. Organization will move quickly for
cost analysis opportunity. Actuarial exam study program in place.
strong candidates.
SOUTHEAST USA - HEALTH CONSULTANT FLORIDA - PENSION ACTUARY
For Position 67160, a health consulting actuary is sought by a For Position 67198, our Florida client is looking to hire a pension
Southeast USA actuarial consulting group. FSA or ASA with 11+ ASA or near-ASA actuary. OPEB valuation experience required.
years of healthcare actuarial experience preferred. Consulting Must have 5+ years of experience. Prominent nationally-recog-
experience not required. nized firm. Immediate need.
EZRA PENLAND
ACTUARIAL RECRUITMENT
Over 40 Years of Industry Experience
[phone]
[email protected]
These Roles and Many Other Actuarial Jobs Can Be Found at EzraPenland.com
M
U
E
K
E
O
J
E!
V
USI The following is
L
C an excerpt from Society
X
E of Actuaries’ President
B Craig W. Reynolds’ address
E
W to members at the 2015 SOA
Annual Meeting & Exhibit. Watch
from the PRESIDENT
the video (bit.ly/SOA2015Video)
or read the transcript
(bit.ly/2015Transcript) of the
speech in its entirety.
BY CRAIG W. REYNOLDS
Five essential
Craig W. Reynolds, FSA,
MAAA, is president of the
ideas for 2016 Society of Actuaries.
[email protected]
Twitter: @CraigWReynolds
As president, there are five essential ideas I would Several life research projects have also been completed,
like to focus on for the year ahead: including projects on understanding modeling and
mitigation of extreme events, exploring the implications
➊| M aintaining the value of our credential. of new mortality tables on insurance products, and the
➋| S trengthening relationships with other organizations. impact of interest rate volatility on life insurance and
➌| Expanding the breadth of work performed by actuaries. annuity products.
➍| E ncouraging diversity within our profession. This year, the new SOA health research on implica-
➎| S upporting our members in international markets and tions of pent-up demand was released. This research is
enhancing the global reputation of our organization. a preliminary perspective on health services that may be
deferred or avoided due to financial constraints as a result
To maintain the value of our credential, we cannot of individuals not having health insurance.
stand still as the world evolves. Our curriculum must In the property and casualty field, we are currently
change to meet the needs of the public and current and developing research projects in General Insurance for 2016
prospective employers. Our research must constantly as part of efforts supporting the SOA’s General Insurance
push forward the frontiers of knowledge and provide track to fellowship. We are also working with the Casualty
practical solutions to important societal problems. The Actuarial Society (CAS), the Canadian Institute of Actuar-
rigor and validity of our examination process must remain ies and the American Academy of Actuaries to release the
beyond reproach. Actuaries’ Climate Index, which analyzes data on the level
In addition to education efforts to support the cre- of climate volatility. The Actuaries’ Climate Index is a great
dential, the Society of Actuaries continues to develop example of the important and high-quality work that can
leading research reports and experience studies. We have be done when the actuarial organizations work together.
completed research on multiemployer pension stress met- It is vital that members of our profession collaborate for
rics and corporate pension risk, and last fall we released the common good of actuaries, their employers and clients,
experience studies on private pension plan mortality. and the public. These relationships are getting better, and
10 The Actuary theactuarymagazine.com