Thank You - Meeting Slides

[KAAS KAAS]

What a great meeting and a blast!

Thanks to attendees for a great turnout and fun meeting! Everyone testified that they learned something new and useful and found the contents of the meeting very helpful. 

Below is a brief recap of the meeting discussions:

(1) PBR is still a hot topic in the Life Insurance and Annuities field, due to its implications not only for reserve amounts but also for captive financing and others. We also discussed the data-driven underwriting idea that we briefly touched on at the December 2014 meeting and has since then become commercialized for some products by larger insurers.

(2) In the retirement space, de-risking and PRT continue to be a leading trend in the corporate pension sector. We discussed why PRT matters for sponsors, especially those with a huge pension size and with finance executives not benefiting in the pension plan, and saw a graph together that illustrates the growth trend of PRT transactions in UK, US and Canada. 

(3) P&C is a rapidly changing industry as it is most directly impacted by disruptive technologies and business ideas. Car sharing services like Uber and Lyft seem to have settled on when the flip to commercial coverage happens. We also discussed a startup P&C company named "Lemonade" that introduced a disruptive business idea of redirecting the leftover premium money - which would otherwise be profits for the company - to a charity organization for causes that policyholders care about. We closed the P&C section by touching on a surprise revelation of higher-than-expected claims and attributing it to improving economic conditions.

(4) In the field of Reinsurance, increased collaboration investment banks with reinsurers in response to a surge in the demand for Alternative Capital is expected to continue and grow the market size to more than double by 2020. We discussed how a life settlement product works and had a chance to hear from those working in the life insurance industry their perspective on this product due to its potential for encouraging misbehavior. Also briefly discussed was ease of collateral requirements for 

(5) Analogous to the PBR movement for capital calculation would be to move away from RBC to the Solvency II methods. We have yet to see the U.S. head towards that direction, and with the new administration in place that has shown various hints that the trend in the regulatory environment will be leniency, it may be less likely for us to see the gap in the U.S. and European standards close. 

(6) We then closed the presentation by reviewing the recently announced education curriculum changes for both SOA and CAS. The key takeaway for student members was that, if you're so close to getting your ASA, you should make every effort to attain it before July 2018. For those pursuing CAS track, be aware of the changes effective January 2018, especially the end of recognition of Exam C by CAS. 

(7) The healthcare field is facing an uncertain future due to a threat of ACA repeal by the current administration and Congress, and we are hoping to cover this part in more detail at a future meeting.

We have already received a number of requests for future meeting topics, and thank you all for having offered the ideas. We are also considering partnering up with DWS at future meetings with a bit more focus on the changing needs of actuarial talents. Please continue to send us suggestions.

Thank you all, and have a wonderful start of the week!

- KAAS