The Data Science and Analytics Committee (DSAC) has released an issue paper, Natural Experiments. The paper discusses an approach to establish causation that approximates the construction of a randomized controlled trial but has lower ethical, practical, and financial barriers.
( )The Risk Management and Financial Reporting Council’s (RMFRC) Financial Reporting Committee, ERM/ORSA Committee, and the Life Practice Council’s Life GAAP Reporting Committee released a white paper, Hedging and Risk Management. The paper examines how insurance companies—life, health, or property and casualty—employ similar techniques to manage insurance risk. It uses life insurance management of mortality risk to illustrate examples and describes capital markets’ risks and how companies have adopted hedging as a risk management tool.
( )The Climate Change Joint Committee released an issue paper, Climatic Events, Inequities, and Risk Mitigation. The paper focuses on the cause-and-effect relationship that different climatic events have on different U.S. populations and communities that disproportionately experience the effects of climate change.
( )The Data Science and Analytics Committee released a major issue paper, Big Data and Algorithms in Actuarial Modeling and Consumer Impacts. The purpose of this paper is to provide a framing for understanding how developments in big data and artificial intelligence (AI) may impact insurance offerings and their oversight; education for actuaries, regulators, legislators, and other interested stakeholders on the evolving impacts of big data and AI technologies on the oversight, accessibility, and sustainability of insurance since the publication of the Big Data and the Role of the Actuary monograph; and education for a framework on algorithmic accountability and considerations specific across different lines of insurance.
( )Exposure draft of a public policy practice note of the Long-Duration Contracts Work Group of the Financial Reporting Committee on the Application of Accounting Standards Update 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts. The exposure draft is Part I: Traditional and Limited-Payment Contracts – Basic Considerations Related to the Liability for Future Policy Benefits. Due to the number of areas of practice impacted by this accounting standard, the white paper is being exposed for comment in sections, of which this is the first. Please send comments to rmfrcanalyst@actuary.org by September 30.
( )Current Estimate Credit Losses Work Group white paper on the new FASB accounting requirement regarding uncollectible reinsurance.
( )Academy Essential Elements paper on Big Data, highlighting the opportunities and challenges that rapidly evolving advancements in data analysis and storage pose for insurers, consumers, and regulators. Essential Elements is a series designed to make actuarial analyses of public policy issues clearer to general audiences.
The Academy released the monograph, Big Data and the Role of the Actuary, at the International Congress of Actuaries meeting in Berlin on June 5. The monograph examines how Big Data is providing actuaries in more practice areas with powerful new analytical tools and opportunities to lead Big Data projects, Academy Immediate Past President and Big Data Task Force Chairperson Bob Beuerlein told ICA attendees. (
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Financial Reporting Committee white paper on Considerations in Implementing the FASB Short-Duration Contract Disclosures. (
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Financial Reporting Committee exposure draft of a new white paper on Challenges and Issues Implementing the FASB Short-Duration Contract Disclosures. Comments on the exposure draft are due Mar. 15. (
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ERM/ORSA Committee overview on the role of regulatory actuaries in reviewing Own Risk and Solvency Assessment (ORSA) reports. (
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ERM/ORSA Committee overview of the key content of an Own Risk and Solvency Assessment (ORSA) and the components of an ORSA for which actuarial input may be useful. (
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Solvency Committee response to an NAIC Solvency Modernization Initiative Task Force request to outline methods of measuring regulatory financial success in the U.S. insurance financial regulatory system. (
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International Accounting Standards Task Force discussion paper on approaches to setting the discount rate for valuation of insurance contracts drafted by December 2011. (
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International Accounting Standards Task Force’s white paper on the topic “What Belongs in Other Comprehensive Income” and “How Would You Calculate It?” with respect to insurance contracts.
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The Risk Classification Work Group published “On Risk Classification” an update to the 1980 “Risk Classification Statement of Principles”. This monograph is intended to provide actuaries and other interested parties with an in-depth but accessible discussion of the concepts underlying risk classification as it is applied in all actuarial practice areas. (
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Financial Regulatory Reform Task Force white paper outlines new key functions necessary for effective systemic risk regulation. (
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Financial Reporting Committee white paper and notes on the use of discount rates in accounting present value estimates. (
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Risk Management and Financial Reporting Council white paper outlines risk management requirements for effective systemic risk regulation. (
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