This research evaluates the current state and future outlook of emerging technologies on the actuarial profession over a three-year horizon. For the purpose of this report, a technology is considered to be a practical application of knowledge (as opposed to a specific vendor) and is considered emerging when the use of the particular technology is not already widespread across the actuarial profession. This report looks to evaluate prospective tools that actuaries can use across all aspects and domains of work spanning Life and Annuities, Health, P&C, and Pensions in relation to insurance risk. We researched and grouped similar technologies together for ease of reading and understanding. As a result, we identified the six following technology groups:
Machine Learning and Artificial Intelligence
Business Intelligence Tools and Report Generators
Extract-Transform-Load (ETL) / Data Integration and Low-Code Automation Platforms
Collaboration and Connected Data
Data Governance and Sharing
Digital Process Discovery (Process Mining / Task Mining)
Nicole Cervi, Deloitte Arthur da Silva, FSA, ACIA, Deloitte Paul Downes, FIA, FCIA, Deloitte Marwah Khalid, Deloitte Chenyi Liu, Deloitte Prakash Rajgopal, Deloitte Jean-Yves Rioux, FSA, CERA, FCIA, Deloitte Thomas Smith, Deloitte Yvonne Zhang, FSA, FCIA, Deloitte
Publication Date: October 2021
Publication Site: Society of Actuaries, SOA Research Institute
In this essay, we consider an additional application. Using the utility framework described by Warren (2019), we examine the impact of using one of BB’s fitted jump-diffusion models on a pension plan sponsor’s long-term asset allocation decision. We want to compare asset allocation results to those using the standard finance workhorse model of a geometric Brownian motion (i.e., lognormal return generating process or LN hereafter).
This session will introduce a late 19th century article by actuary FL Hoffman. This article provided a justification for racially discriminatory life insurance premiums – a practice that existed well into the 20th century and was consistent with “Jim Crow” thinking. Join the presenters as they discuss the reasons that Hoffman’s article was actuarially unsound using commentaries at the time it was written as well as recent publications that include important reflections on the actuarial profession that apply both historically and in the present. The session will discuss thoughts about how Hoffman’s work would be received and handled today, including the role of the ABCD in such matters, several rules and regulations that now guide actuarial conduct and are designed to prevent discriminatory practices, and actuarial ethical responsibilities. The session will conclude with an observation that one of the best ways for the actuarial profession to prevent the use of racially discriminatory practices in our work is by having a diverse actuarial profession with members who will provide first-hand perspectives about inappropriate actuarial practices.
SOA leadership and members discuss the University-Earned Credit (UEC) program. Watch this recording of the May 24 member town hall about UEC. If you have any additional questions email us at firstname.lastname@example.org. Learn about the UEC program by visiting https://www.soa.org/education/resources/uec/uec-program/
Overall, the survey results show that COVID-19 has had an impact on emerging LTC insurance experience through higher mortality (for both active and disabled lives) and lower claim incidence. Results on voluntary lapse rates were mixed; however, premium grace period extensions due to COVID-19 may have contributed to differences in reporting. The survey results also indicated that, in many cases, the impact of COVID-19 has not yet been studied or there is not yet data available. This was especially true in relation to studying COVID-19’s impact across various characteristics (gender, attained age, marital status, situs).
For questions studying the impact of COVID-19 on specific assumptions, the effect was measured on a multiplicative basis compared to the expectation without COVID-19, except for voluntary lapse, which was measured on an additive basis. See examples in the full survey questions in Appendix A for additional detail.
Authors: Mike Bergerson, FSA, MAAA, Principal and Consulting Actuary Andrew Dalton, FSA, MAAA, Principal and Consulting Actuary Robert Eaton, FSA, MAAA, Principal and Consulting Actuary James Stoltzfus, FSA, MAAA, Principal and Consulting Actuary
The video features Neil Raden who is the author of ethical use of AI for Actuaries. Alongside him , it features Kevin Pledge who is CEO of Acceptiv , FSA,FIA and chair of Innovation and Research Committee of SOA. We discuss about the issue of ethics and about the use of new data sources in the recent Emerging issues in Underwriting Survey Report by IfOA.
The first quarter of 2020 all-cause individual life death counts were in the range of 93% to 99% for the first quarter in the previous five years, similar to the CDC’s estimated actual to expected all-cause deaths for the population.
The second quarter of 2020 all-cause individual life death counts were in the range of 110% to 113% for the second quarter in the previous five years. This was lower than the CDC’s second-quarter estimate of 118% to 123% for the population.
The average attained age at death of the individual life COVID claims is 0.6 years older than the average age of non-COVID claims. The U.S. population had a much larger difference of 3.0 years between the average attained age of COVID and non-COVID deaths.
Author(s): Individual Life COVID-19 Project Work Group
The Casualty Actuarial Society, Canadian Institute of Actuaries, and the Society of Actuaries are pleased to make available results from the 2020 Emerging Risks Survey, the fourteenth in the series. Conducted by Max J. Rudolph of Rudolph Financial Consulting LLC, the survey incorporated a set of Emerging Risks defined by the World Economic Forum as the basis for several of the questions. The survey also included questions related to current risk management topics.
Now available is a report presenting the major findings from the study. The full report will be released later in the year.
Description: The SOA conducted a survey, gathering a high-level view of U.S. Group Term Life Insurance mortality results during the COVID-19 pandemic, as compared to prior period baseline mortality results. The datasets for the SOA report encompass all Group Term Life claims reported to participating carriers as of August 31, 2020.
AUTHORS: Thomas J. Britt, FSA, MAAA Paul Correia, FSA, MAAA Mike Krohn, FSA, CERA, MAAA Rick Leavitt, ASA, MAAA Cynthia S. MacDonald, FSA, MAAA, SOA Patrick Nolan, FSA, MAAA, SOA Stacy Paris, FSA, MAAA Steve Rulis, FSA, MAAA