The Academy’s office will be closed on Monday, July 4, in observance of Independence Day.
ASB Pension Task Force Report Released; Pension Committee to Begin Drafting Modifications
The Actuarial Standards Board (ASB) has released the report of its Pension Task Force (PTF), which began work more than a year and a half ago to consider the standards implications of many proposals for change related to public pension plans.
In December 2014, the PTF was formed to review input from interested stakeholders on actuarial standards of practice (ASOPs) regarding public pension plans, for the purpose of developing suggestions for the ASB’s consideration. This input included the responses to the ASB’s request for comments on ASOPs and public pension plan funding and accounting, and testimony provided at the ASB’s July 2015 public hearing on public pension plans.
After extensive discussion of the PTF’s suggestions, the ASB has directed its Pension Committee to draft appropriate proposed modifications, in accordance with ASB procedures. The proposed modifications would be applicable to both public and private-sector plans, and are part of a greater, ongoing effort by the ASB in recent years to strengthen pension-related ASOPs.
Contingencies, Actuarial Update Released
The July/August issue of Contingencies was published Friday. The cover story, “Step by Step,” offers the authors’ views on practical reform for Social Security that aligns retirement age with income. Other features investigate risk management in moviemaking, and applying game theory to assess the impact of integrated health care delivery models. Also, a new department examines the structures of actuarial professionalism, beginning with the Code of Professional Conduct. The electronic version of the magazine is available now; look for your physical copy in the mail soon.
In the June issue of Actuarial Update, read more about the report from the ASB’s Pension Task Force. Also, former Sen. Chris Dodd, principal sponsor of the Dodd-Frank financial reform law, will give the keynote address at the Academy’s Annual Meeting and Public Policy Forum, the Academy released issue briefs analyzing the findings of the annual Medicare and Social Security trustees’ reports, and a July webinar will cover the insurance implications of driverless cars.
Council on Professionalism Updates Discussion Paper
The Council on Professionalism updated two sections of the 2004 discussion paper, Structural Framework of U.S. Actuarial Professionalism—Concepts on Professionalism. The two sections, “U.S. Actuarial Standards of Qualification” and “U.S. Actuarial Standards of Practice” were updated to reflect developments that have occurred in those areas since the original date of publication.
Upcoming Events
Capitol Forum Webinar Planned on Driverless Cars and Insurance: Join the Academy on July 27 from noon to 1 p.m. EDT for the webinar, “Driverless Cars Are Here: Implications for Policy and Insurance.” Eight states and the District of Columbia have issued regulations about testing of driverless cars on their roads, with several more in the pipeline. Several prominent federal and state regulators will discuss the insurance implications going forward at this Capitol Forum event. Register today.
ORSA Webinar Set for July 20: The ERM/ORSA Committee will host an interactive webinar, “Putting a Price on Risk: Quantifying Risk Exposures for ORSA Reports,” on July 20, from noon to 1 p.m. EDT. Members of the committee’s Risk Exposures Subgroup will provide an overview of the forthcoming Quantifying Risk Exposures for Own Risk and Solvency Assessment Reports practice note. Register today.
Academy Adds Regulatory Activity to New Issue of StateScan Quarterly
The Academy released its second issue of StateScan Quarterly, which now offers highlights of state regulatory activity in addition to the previously included legislative actions. The summer issue’s topics include principle-based reserving, Medicaid expansion, and insurance for ride-sharing operations.
StateScan is the expanded legislative/regulatory portal provided as an Academy member benefit that can be accessed by members at any time, and that provides state legislative and regulatory reports on key topics in all actuary practice areas. Legislative reports highlight legislation in all 50 states on a selected topic, including a bill summary, legislative status, and sponsor information. Regulatory reports show regulations in all 50 states on selected topics including status, description, and text of the regulation.
Webinars Cover Big Data & Professionalism, LTC Insurance & Principle-Based Modeling
Tuesday’s webinar, “Big Data and Actuarial Professionalism,” drew more than 2,000 attendees from 700 registered sites. Academy President-elect Bob Beuerlein, Academy Senior Property/Casualty Fellow Jim MacGinnitie, and Actuarial Standards Board Member Ross Winkelman examined examples in the casualty, health, and life practice areas, and gave an overview of the professionalism tools actuaries can use to help them assess whether their work is meeting professional obligations. Log in to the Academy’s Professionalism Webinar Page to see slides and listen to audio of this webinar without charge.
More than 200 people attended Thursday’s webinar on the Report on Principle-Based Reserve Modeling for Long-Term Care (LTC) Insurance, which was issued in January. Hosted by members of the LTC PBR Work Group, the webinar provided a live demonstration of the model in Excel as well as discussion of the report, which demonstrates the feasibility of one modeling approach. Slides and audio from the webinar are available on the members’ webinar site.
Contingencies Feature Story, Charting the Course Book Win Excel Awards
Contingencies, the Academy’s bimonthly magazine, and Charting the Course, the book released last year in conjunction with the Academy’s 50th anniversary, were presented with Excel Awards for excellence in publishing at the Association Media & Publishing conference in Washington this week. The Contingenciescover story, “Smoke & Mirrors: Marijuana Use and Life Underwriting,” from the March/April 2015 issue, won a bronze award for best magazine feature article. Charting the Course won a bronze award in the general audience book category. Charting the Course is available as a digital download and e-book, without charge, and in hardback for $20, including postage. The book tells the story of the Academy’s first 50 years in an engaging narrative style.
Alerts
The Center for Consumer Information and Insurance Oversight released a summary report regarding risk adjustment transfers and reinsurance payments for the 2015 benefit year.
The Federal Crop Insurance Corporation issued final rules on June 30 implementing statutory changes in the crop insurance program mandated by The Agricultural Act of 2014, Conference Report H. Rept. 113-333, also known as the 2014 Farm Bill.
Subscribe to Member Alerts: Subscribers to the Academy’s alerts are notified by email when a new alert is posted in their area(s) of interest. The alerts are available in five areas of focus: casualty, health, life, pension, and cross-practice issues. Academy members may subscribe to any or all of them free of charge as a member service after signing in to the member section of the website.
Public Policy Activities
The Social Security Committee released an issue brief that explores possible design changes to Social Security that would address the problems faced by a growing part of the U.S. population who may attain advanced ages and lack adequate resources.
The Social Security Committee released an issue brief on the 2016 Social Security Trustees Report that examines the social insurance program’s long-term solvency issues and recommends that Congress should act soon to improve the long-term financial outlook of the program.
The Life Practice Council submitted comments to the NAIC’s Life Actuarial Task Force on the qualified actuaries’ responsibilities to the interests of the company versus the commissioner.
The ERM/ORSA Committee’s Risk Exposures Subgroup released a practice note on quantifying risk exposures for Own Risk and Solvency Assessment reports.
In the News
A USA Todaystory on retirement planning cited the widely praised Academy/SOA Actuaries Longevity Illustrator as a useful tool to help people understand longevity risk and plan for retirement. A version of the story was published in the Arizona Republic.
Senior Pension Fellow Ted Goldman was quoted in a Baltimore Sunstory on the hard choices facing many multiemployer plans struggling to fund defined benefit obligations. The story was featured in Bloomberg and several other outlets.
A Motley Foolcolumn, also featured on Nasdaq.com, uses the Academy’s Social Security Game to analyze the effectiveness and feasibility of various congressional proposals designed to shore up Social Security’s long-term sustainability.
A Modern Healthcarestory quoted Kenneth Clark, chairperson of the Medicare Supplement Work Group, in a story that looks at recent and future changes to Medigap plans and their implications for insurers and Medicare-eligible retirees.
The Journal Advocate (Colo.) and The Republic (Ind.) cited the Academy’s Individual and Small Group Markets Committee issue brief analyzing drivers of proposed 2017 health insurance premiums in a column that explores how premiums and subsidy fluctuations under the Affordable Care Act have affected policyholders in the Midwest.
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