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Overview

Agenda
 
Agenda Day 1
 
Agenda Day 2
 
Agenda Day 3
 
Agenda Day 4

Registration

Hotel

Call for Speakers

Presentations

Additional Information

Travel
 

Agenda

Day 3: Tuesday, October 27

  • Session 41: Taxation Section Hot Breakfast
  • Session 42: Product Development Section Hot Breakfast
  • Session 43: Management & Personal Development Section Continental Breakfast: Review of Recent Executive Books
  • Session 45: Design Your Own Community Health Plan
  • Session 47: Risky Business
  • Session 48: Investment Concepts for Pension Plans
  • Session 49: Changing Landscape for Medicare Advantage Plans
  • Session 50: Trends and Successes in the Middle Market
  • Session 51: Value-Based Insurance Design
  • Session 52: Market-Consistent Pricing
  • Session 53: Modeling Human Behavior
  • Session 54: CFO Panel
  • Session 55: Derivatives Markets – How Have They Changed?
  • Session 56: Do Your Long-Term Care Claim Reserves Measure Up?
  • Session 57: The Convergence of Accounting Standards for Insurance
  • Session 58: Hot Topic – TBA
  • Session 59: Perspectives on the Financial Crisis and Enterprise Risk Management
  • Session 61: If We Build It, Will They Come (a Retirement 20/20 Update)?
  • Session 62: Using Corporate Bond Spot Yield Curves for Pension Discounting: Lessons Learned from 2008 and 2009
  • Session 63: Wellness: Wiseness or Weirdness? (and Does it Really Have an ROI?)
  • Session 64: VA Product Changes in the Current Economic Environment
  • Session 65: Reviewing and Validating Actuarial Models
  • Session 66: International Financial Reporting Standards and Solvency Update
  • Session 67: Post-Level Premium Lapse and Mortality
  • Session 68: Life Insurance Hedging Programs – What’s Next?
  • Session 69: LTCI Under Health Care Reform: Oil and Water or Ham and Eggs?
  • Session 70: ASOP 41: Actuarial Communications is not an Oxymoron
  • Session 71: An Actuarial Tour of the New Economic Landscape
  • Session 72: Current Topics Affecting Smaller Insurance Companies
  • Session 73: Optimizing Model Performance and Process Flow
  • Session 74: Current RIMS Enterprise Risk Management Activity
  • Session 76: Presidential Luncheon
  • Session 78: Living with Actuarial "Black Swans" – A Discussion with Nassim Nicholas Taleb
  • Session 79: Market-Consistent Valuation of Pension Plans
  • Session 80: Managing Longevity Risk
  • Session 81: The Importance of Actuaries in Financial Contracting
  • Session 82: Modeling Anti-Selection and Optimal Pricing of Individual Medical and Small Group Insurance
  • Session 83: Life and Annuity Product Development Trends and Issues
  • Session 84: Actuarial Efficiency – Doing More With Less
  • Session 85: Capital Markets Chaos...Where Do We Go from Here?
  • Session 86: MCEV<0: What Does It Mean for Investment Strategy?
  • Session 87: LTCI Risk Management in a New Economy
  • Session 88: Microinsurance
  • Session 89: Building and Managing Your Career as an Entrepreneur
  • Session 90: Solvency II and a New Enterprise Risk Management Paradigm
  • Session 92: Design Your Own Community Health Plan
  • Session 94: International Section Reception

  • Session 41: Taxation Section Hot Breakfast

    Time: 7:00 – 8:15 a.m.
    Session Sponsor: Taxation
    Chairperson: Kory J. Olsen, FSA, CERA, MAAA, CFA
    Presenter: Theodore Sims, JD, PhD*

    A professor from Boston University Law School, Ted Simms is the guest speaker at the Taxation Section Hot Breakfast. Simms' areas of expertise include the taxation of capital income, wealth transfer taxation, federal tax policy and the effects of tax policy on socio economic equity.

    This breakfast is open to all meeting attendees. There is a nonrefundable fee of $10 for Taxation Section members and $25 for all others. Please include the additional fee with your registration. If you plan to attend, you must register in advance to obtain a ticket.

    Coordinator: Kristin A. Schaefer, FSA, MAAA

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    Session 42: Product Development Section Hot Breakfast

    Time: 7:00 – 8:15 a.m.
    Session Sponsor: Product Development
    Chairperson: TBD

    Join fellow Product Development Section members for a hot breakfast and an update on section activities including research on principle-based reserves, Shock Lapse and Credibility Theory Practices, as well as the development of professional development events and webcasts. This is a great opportunity to network with other product development actuaries and to discuss product development issues with your peers.

    This breakfast is open to all meeting attendees. There is a nonrefundable fee of $10 for Product Development Section members and $15 for all others. Please include the additional fee with your registration.

    Coordinator: Susan J. Saip, FSA, MAAA

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    Session 43: Management & Personal Development Section Continental Breakfast: Review of Recent Executive Books

    Time: 7:00 – 8:15 a.m.
    Session Sponsor: Management & Personal Development
    Moderator: Kevin F. Leavey, FSA, MAAA
    Presenters: Paula M. Hodges, FSA, MAAA; Joseph Paesani, FSA, MAAA

    With all of the business books available which is the next one you should read for your personal development? Come listen to summaries of several books you should consider reading and to discuss your favorite books with colleagues.

    This breakfast is open to all meeting attendees free of charge. Please register in advance to obtain a ticket.

    Coordinator: Paula M. Hodges, FSA, MAAA

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    Session 45: Design Your Own Community Health Plan

    Time: 7:30 – 10:00 a.m.
    Session Sponsor: Health
    Facilitators: TBD

    This program offers the opportunity to participate in a novel experiential learning session. Using a computer-based program called CHAT ®, you will design a basic health plan to cover the uninsured. The catch? The money available is one-third less than typical employer based coverage. How will you decide what coverage is important? What does society consider valuable coverage? The session will provide a broad range of perspectives in policy, economics and health care and your participation is vital.

    In the midst of the current political climate related to health care, this is a relevant session for everyone, not just health care actuaries.

    The session will be limited to 20 participants and is free of charge.

    Coordinator: Beth K. Grice, FSA, MAAA

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    Session 47: Risky Business

    Format: Panel Discussion
    Time: 8:30 – 10:00 a.m.
    Session Sponsor: Pension
    Noncore Credit: 90 minutes
    Moderator: Anne M. Button, FSA, EA, MAAA
    Presenter: Ruth Helman*

    In this session, speakers will examine key findings of the 2009 Post-Retirement Needs and Risks Survey and how this knowledge will help us as we build a new retirement system. You and other actuaries building products for individual risk management will also gain valuable insight from this session.

    The Society of Actuaries has been sponsoring surveys of post-retirement needs and risks biennially since 2001. Each survey is a combination of new items and repeated questions to provide trend data. In 2007, key new areas were the stages of retirement and more information about how people view and manage long-term care and health risks. The 2009 version focuses on changing expectations in light of the recent financial crisis. This session will examine key findings of the survey and how this knowledge will help us as we build a new retirement system. It will also explore the choices an individual faces, what information they need to have in order to be able to make the best decisions and what employers should do to help their employees.

    You’ll gain an understanding of how people view and manage retirement risks, as well as what the needs are in retirement. You and other actuaries building products for individual risk management will also gain valuable insight from this session.

    Coordinator: Cynthia J. Levering, ASA, EA, MAAA, MSPA

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    Session 48: Investment Concepts for Pension Plans

    Format: Open Forum
    Time: 8:30 – 10:00 a.m.
    Session Sponsor: Pension
    Noncore Credit: 90 minutes
    Moderator: Ari N. Jacobs, FSA, EA, MAAA
    Presenters: Chad Aaron Hueffmeier, FSA, MAAA, FCA, EA; Ari N. Jacobs, FSA, EA, MAAA

    This session will provide a high level (simple, basic) explanation of some of the key strategies, investment vehicles and other issues and concepts in the world of pension investments today. A sample of some of the terms and concepts which will be covered: Portable alpha, absolute return, market neutral, securities lending, private equity and interest rate swaps. Speakers will discuss what these are and how they are used. The objective is to provide you with a better understanding of typical investment strategies and concepts which impact pension plans.

    Coordinator: R. Evan Inglis, FSA, EA, FCA,MAAA

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    Session 49: Changing Landscape for Medicare Advantage Plans

    Format: Panel Discussion
    Time: 8:30 – 10:00 a.m.
    Session Sponsor: Health
    Moderator: TBD
    Presenters: TBD

    The current political and fiscal climate in Washington D.C. poses several interesting challenges for the Medicare Advantage program. Is the program over-funded? What is the most equitable way to reduce funding to the Medicare Advantage program? What actions would plans take in reaction to funding cuts? Can the program survive funding cuts? Is competitive bidding a viable solution? Explore the future state of the Medicare Advantage program and other product alternatives to serve Medicare beneficiary needs. You will learn more about the political climate, funding issues and risks/opportunities for the Medicare Advantage program.

    Coordinator: Sudha Shenoy, FSA, CERA, MAAA

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    Session 50: Trends and Successes in the Middle Market

    Format: Panel Discussion
    Time: 8:30 – 10:00 a.m.
    Session Sponsor: Marketing & Distribution
    Moderator: TBD
    Presenters: TBD

    This session will cover some of the important market dynamic for all generations within the middle market. You will learn more about the definition of middle market and what some industry experts say are the buying trends and behavioral habits of individuals within this market. Products and services must meet these customers’ needs, so understanding these needs and the drivers of growth in this market segment is of importance to all actuaries. You will hear from company and industry experts about some recent trends and successes experienced by companies who focus on this market. With an emphasis on product and market trends, at the end of this session you will have a solid understanding of today’s market dynamics as it affects the middle market customer and how this impacts our products, persistency, growth and, ultimately, profitability.

    Coordinator: Michael L. Kaster, FSA, MAAA

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    Session 51: Value-Based Insurance Design

    Format: Panel Discussion
    Time: 8:30 – 10:00 a.m.
    Session Sponsor: Health
    Moderator: Daniel W. Bailey, FSA, MAAA
    Presenter: Michael Chernew, PhD*

    Value-based insurance design is an approach to health coverage that varies cost-sharing in an effort to accommodate the needs of the individual patient. While uniform cost-sharing produces some over- and under-utilization on a member-specific basis, VBID responds to patient heterogeneity in order to deliver an appropriate level of utilization to each member in an effort to obtain greater value from each health care dollar. This may be as simple as eliminating or reducing copays on meds for members with certain chronic conditions…or it may be more complex.

    Harvard Medical School professor and Health Affairs author, Michael Chernew, will join us to elaborate on this new direction in health insurance plan design. Chernew will be accompanied by other industry experts who will present their perspectives on how this theory can be put into practice and what they expect it can achieve.

    You will learn what VBID is, how it works and what to expect as it becomes a more prevalent approach to health-plan design.

    Coordinator: Daniel W. Bailey, FSA, MAAA

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    Session 52: Market-Consistent Pricing

    Format: Panel Discussion
    Time: 8:30 – 10:00 a.m.
    Session Sponsor: Product Development
    Moderator: Dominique Lebel, FSA, FCIA, MAAA
    Presenter: Dominique Lebel, FSA, FCIA, MAAA

    More and more companies are looking at the profitability of their business on a market-consistent basis motivated by FAS 157 and 159, MCEV principles, economic capital calculations, asset-liability management and IFRS Phase II. Market-consistent pricing addresses some of the shortcomings of traditional pricing methods by providing a framework for understanding the tradeoffs between shareholder risks and rewards using a robust, transparent and objective economic methodology that is consistent across products. Panelists will combine the theoretical and the practical to provide you with an understanding of market-consistent pricing techniques, how common products perform under a market-consistent framework, how market-consistent pricing addresses some of the limitations of traditional pricing approaches and why companies are using these techniques.

    Coordinator: Dominique Lebel, FSA, FCIA, MAAA

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    Session 53: Modeling Human Behavior

    Format: Panel Discussion
    Time: 8:30 – 10:00 a.m.
    Session Sponsors: Management & Personal Development, Health
    Moderator: Scott D. Haglund, FSA, MAAA
    Presenters: Richard Carlson Leavitt, ASA, MAAA; Chris E. Stehno*

    Actuaries spend a great deal of time projecting future scenarios using quantitative methods and models, and for the most part, they do that quite well. What actuaries don't do as much is incorporate the components of human behavior into their quantifiable formulae. Sometimes that human behavior is rational; sometimes it is not. This session focuses on methods of incorporating human behavior into the models that actuaries use to project future scenarios.

    Coordinator: Scott D. Haglund, FSA, MAAA

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    Session 54: CFO Panel

    Format: Panel Discussion
    Time: 8:30 – 10:00 a.m.
    Session Sponsor: Financial Reporting
    Moderator: TBD
    Presenters: TBD

    Insurance company chief financial officers (CFOs) have been faced with many significant issues recently given the financial turmoil in our markets and the downstream impacts it has had to insurance companies. Join us for a timely discussion of those issues from a panel of CFOs, which will broaden your perspective of our industry and its direction. Prominent panelists will first discuss their views from the CFO perspective, focusing on issues and implications important to actuaries, followed by a question and answer period for session participants.

    Coordinator: Steven F. Malerich, FSA, MAAA

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    Session 55: Derivatives Markets – How Have They Changed?

    Format: Panel Discussion
    Time: 8:30 – 10:00 a.m.
    Session Sponsor: Investment
    Noncore Credit: 90 minutes
    Moderator: TBD
    Presenters: TBD

    Financial derivatives played a critical role in the recent financial crisis. As a result, derivatives markets have undergone many fundamental changes. This session will outline those changes, preview some of the changes yet to come and discuss their implications for insurers and pension plans.

    Coordinator: Gary A. Hatfield, FSA, MAAA

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    Session 56: Do Your Long-Term Care Claim Reserves Measure Up?

    Format: Panel Discussion
    Time: 8:30 – 10:00 a.m.
    Session Sponsor: Long-Term Care Insurance
    Noncore Credit: 90 minutes
    Moderator: David E. Kerr, ASA, MAAA
    Presenters: David E. Kerr, ASA, MAAA; Shawna A. Meyer, FSA, MAAA

    The LTC claim risk is unique in many ways and the liability associated with these claims is influenced by many interdependent factors. In this session, experts will explore a variety of important topics related to the claim liability, including: factors to consider when defining a new claim, steps to take when closing a claim, what to do with inactive claims, planning for claims that could reopen, typcial problems with claim databases that could greatly alter the reserve calculation if left unattended, the impact of claims adjudication procedures and claim inventory backlog, trends that are influencing claim termination rates, the value of lifetime benefits, and other important topics. While this session is not designed to show you how to calculate the claim reserve, it will provide keen insight into establishing appropriate values for many factors that influence the LTC claim liability.

    Coordinator: David E. Kerr, ASA, MAAA

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    Session 57: The Convergence of Accounting Standards for Insurance

    Format: Panel Discussion
    Time: 8:30 – 10:00 a.m.
    Session Sponsors: International, Financial Reporting
    Moderator: Darryl G. Wagner, FSA, MAAA
    Presenter: TBD

    This session will cover the convergence of U.S. GAAP and International Financial Reporting Standards (IFRS). Speakers will provide an overview of the current plans and timelines for convergence, specific issues and implications for Phase II of the insurance contracts project, and the impact of fair value accounting on insurer operations, pricing, etc.

    Coordinator: Carl I. Hansen, FSA, EA, FCA, MAAA

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    Session 58: Hot Topic – TBA

    Format: Panel Discussion
    Time: 8:30 – 10:00 a.m.
    Session Sponsor: Society of Actuaries
    Moderator: TBD
    Presenter: TBD

    Actuaries who work in all areas of practice continue to monitor developments on several fronts that could dramatically change the work that we do. This session will be devoted to the most pressing hot topic that arises in the couple weeks leading up to the SOA 09 Annual Meeting & Exhibit.

    At the October 2008 Annual Meeting, there was an added session on the “Impact of the Financial Crisis”. That session was very well received and demonstrated that there needs to be specific content to the hot topic du jour. This session will only be finalized in the couple weeks prior to the conference, so look at the on-site information to find the dynamic issue that will be discussed during this session.

    Coordinator: Mike A. Boot, FSA, FCA, MAAA

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    Session 59: Perspectives on the Financial Crisis and Enterprise Risk Management

    Format: Panel Discussion
    Time: 8:30 – 10:00 a.m.
    Session Sponsor: Joint Risk Management
    Moderator: TBD
    Presenter: TBD

    The panelists will offer their perspectives on what caused the financial crisis. They will discuss financial bail-outs and stimulus packages and explain their views on what needs to be done. They will also consider the question, “Would actuaries have made a difference?” and provide their thoughts on whether the crisis has revealed enterprise risk management (ERM) to be worthless or underscored the necessity for a more rigorous approach to ERM. You are invited to bring your questions so that a lively dialog can transpire between audience members and the panelists.

    Coordinator: Robert F. Wolf, ASA, CERA, FCA, FCAS, MAAA

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    Session 61: If We Build It, Will They Come (a Retirement 20/20 Update)?

    Format: Panel Discussion
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsor: Pension
    Noncore Credit: 90 minutes
    Moderator: Emily K. Kessler, FSA, EA, FCA, MAAA
    Presenters: Emily K. Kessler, FSA, EA, FCA, MAAA; Cynthia J. Levering, ASA, EA, MAAA, MSPA

    The Society of Actuaries Pension Section launched the Retirement 20/20 project in late 2005 in reaction to the shortcomings of both traditional defined benefit (DB) plans and defined contribution (DC) plans, shortcomings which have been further accentuated during the recent financial crisis. Retirement 20/20 is a strategic multi-year project to look at the possibilities that could exist outside of the traditional DB/DC framework in both the United States and Canada. Since its inception, Retirement 20/20 has systematically brought together actuaries (pensions and annuities), economists, attorneys, employers, investment advisors and public policy experts to debate what we need for a robust retirement system in the 21st century without regard to the constraints of existing legislative requirements.

    This session will bring you up to date on what has been learned from the three conferences, present the Measurement Framework tool and demonstrate its application to several actual design models, summarize the Retirement 20/20 capstone report presented at the Pension Research conference at Wharton earlier this year and give you a preview of plans for 2010, including a unique and exciting “Call for Models” contest.

    Coordinator: Cynthia J. Levering, ASA, EA, MAAA, MSPA

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    Session 62: Using Corporate Bond Spot Yield Curves for Pension Discounting: Lessons Learned from 2008 and 2009

    Format: Panel Discussion
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsor: Pension
    Noncore Credit: 90 minutes
    Moderator: TBD
    Presenters: TBD

    Most pension actuaries use a high-quality corporate bond spot yield curve to calculate an equivalent discount rate for FAS 87 and FAS 106. There are several models available and, historically, most have produced results that track within a fairly narrow range for most pension plans.

    The stock market downturn of 2008-2009 and the reduction in Treasury yields to near zero, coupled with bankruptcies and bailouts of major U.S. companies, have made it increasingly difficult to predict the magnitude and shape of corporate bond yield curves and how they might affect a plan sponsor’s choice of discount rates for its pension plans.

    This session will provide insight into how spot yield curves are developed, including how bonds are selected and how these yields correlate with other financial benchmarks. The panel will also discuss how the undersupply of bonds could affect future bond yields and the appropriateness of using different yield curves for different plans and different circumstances.

    Coordinator: Cheryl E. Tillman, FSA, EA, FCA, MAAA

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    Session 63: Wellness: Wiseness or Weirdness? (and Does it Really Have an ROI?)

    Format: Panel Discussion
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsor: Health
    Moderator: TBD
    Presenter: Michael A. Clarke, FSA, FCA, MAAA

    Wellness is a catchall term which gets repeated often by employers looking for the silver bullet to reduce their health care spend. It is often mentioned in connection with health care reform. But what do people really mean by wellness? Is it a program? Is it personal? Is it measurable? Is there an ROI? Are employer on-site programs having an impact? How can on-site clinics help an employer improve health and reduce overall costs? Participants will be exposed to contemporary definitions and questions with regard to this hot topic in health.

    Coordinator: Jennifer L. Gillespie, FSA, MAAA

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    Session 64: VA Product Changes in the Current Economic Environment

    Format: Panel Discussion
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsor: Product Development
    Moderator: TBD
    Presenters: Noel John Abkemeier, FSA, MAAA; Albert J. Dal Porto, FSA, MAAA; Stephen R. Wolfrath, FSA, MAAA

    In this session, you will gain insight into the immediate and long-term ramifications of the current economic environment on variable annuity product benefits and features. In addition to an overview of many recent changes to guaranteed living and death benefit designs and pricing, you will learn about the less visible impacts of the current economic environment. For example, how has policyholder behavior changed? How effective have risk-mitigation programs been and what future strategies are being considered? What changes can be made to inforce business in light of contractual constraints and policyholder expectations? What specific product changes will have the greatest impact on the future growth of the product line? What design changes garner more favor with regulators, rating agencies and investors? As a manager or pricing actuary of a variable annuity product line, you will want to be part of this real time discussion of current issues that are impacting this business.

    Coordinator: Paul O. Pflieger, FSA, MAAA

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    Session 65: Reviewing and Validating Actuarial Models

    Format: Panel Discussion
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsor: Financial Reporting
    Moderator: Jason A. Morton, FSA, MAAA
    Presenter: Mary Ellen Luning, FSA, MAAA

    Actuarial models have become extremely important to the operations of insurance companies, which has been acknowledged by company senior management, boards of directors, external auditors and others. In this session we will discuss the common methods and approaches being used to verify that models are working as intended. By the end of this session, you will have learned about the types of model review and validation analyses being used today, including detailed worksteps on how to perform such reviews at a high level and also at a more granular level.

    Coordinator: Jason A. Morton, FSA, MAAA

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    Session 66: International Financial Reporting Standards and Solvency Update

    Format: Panel Discussion
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsors: Financial Reporting, International
    Moderator: Henry W. Siegel, FSA, MAAA
    Presenters: Mike Dorsel, ASA; Larry H. Rubin, FSA, CERA, FCA, MAAA; Therese M. Vaughan, ASA, ACAS, MAAA, PhD

    The insurance financial reporting landscape is rapidly changing worldwide. The latest International Financial Reporting Standards (IFRS) Exposure Draft on Insurance Contracts is to be released late this year. Solvency II has not been adopted by the EU and the NAIC is undertaking a Solvency Modernization Initiative to review US requirements. New reporting and solvency standards may be a reality for US companies in just a few years. This session provides an up-to-date overview of the latest developments in the areas of accounting, Europe’s Solvency II and the NAIC developments.

    Coordinator: Basha H. Hoffman, FSA, MAAA

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    Session 67: Post-Level Premium Lapse and Mortality

    Format: Panel Discussion
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsor: Reinsurance
    Moderator: TBD
    Presenters: Brian K. Carteaux, FSA, MAAA; Stephen R. Peeples, FSA, MAAA

    What is the general level of lapses and mortality expected by life insurance companies for individual level term life insurance products for the period following the level premium period? What are life insurance companies actually experiencing for lapses and mortality for the products for the period following the level premium period? What is the size of the premium increase at the end of the level term period for these products? Does the size of the premium increase affect the level of lapse and mortality rates at that point in time? If so, what are the effects on lapse and mortality? This session will answer these questions.

    Coordinator: Michael Barnhart*

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    Session 68: Life Insurance Hedging Programs – What’s Next?

    Format: Panel Discussion
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsor: Investment
    Moderator: TBD
    Presenters: TBD

    Recent market turmoil has placed enormous stress on life insurers’ hedging programs. Many of the hedge programs have undergone significant changes in response. Changes have ranged from increasing the number of Greeks hedged to shifting to objectives from a FAS 133 focus to a Statutory solvency focus. This session will discuss these changes, as well as the challenges relating to them.

    Coordinator: Gary A. Hatfield, FSA, MAAA

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    Session 69: LTCI Under Health Care Reform: Oil and Water or Ham and Eggs?

    Format: Open Forum
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsor: Long-Term Care Insurance
    Moderator: James M. Glickman, FSA
    Presenter: James M. Glickman, FSA

    Under President Obama's administration and a Democratic Congress, the prospects for significant health care reform are very real. This could include a government attempt to provide some form of LTC protection through a public program. How could this alter the LTC risk as we know it today and the opportunities for growth within the LTCI industry? How should the LTCI industry react to this type of change? Should the industry welcome government-mandated coverage that will help increase private LTCI market penetration? Presenters will address these questions and others affecting the LTC/LTCI industry.

    Coordinator: David E. Kerr, ASA, MAAA

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    Session 70: ASOP 41: Actuarial Communications is not an Oxymoron

    Format: Panel Discussion
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsor: American Academy of Actuaries
    Core Credit: 90 minutes
    Moderator: TBD
    Presenters: TBD

    Actuarial Standards of Practice No. 41 Actuarial Communications has been recently revised and exposed for comment by the ASB. The SOA believes in good faith that this session qualifies toward the professionalism requirements and organized activity requirements in the Qualification Standards and SOA CPD requirements. One of the goals of the ASOP 41 revision is to make clear that the actuary is responsible for any assumptions and methods underlying the actuarial communication unless they are expressly disclaimed and secondly to standardize the treatment of deviations among all ASOPs.

    By attending this session, you will learn the key changes in ASOP 41 and the standards and practices that will impact your written, electronic and oral communications.

    In light of the increasingly complex legislative and compliance controls over the last decade, this session is designed to help actuaries communicate clearly and concisely, so the recipient can understand and appreciate technical contents.

    Coordinator: Sheila Kalkunte*

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    Session 71: An Actuarial Tour of the New Economic Landscape

    Format: Panel Discussion
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsor: Actuary of the Future
    Moderator: Janet G. Deskins, FSA, MAAA
    Presenters: Frederick James Andersen, FSA, MAAA; David L. Driscoll, FSA, EA, FCA, MAAA; David K. Sandberg, FSA, CERA, MAAA

    How does the stimulus package affect me as an actuary? What if my company becomes partially or fully government owned? How do the steps the government has taken influence me, my employer and my world?

    The economic landscape has changed drastically over the past year. With a number of government initiatives being past and others sure to come this session considers how such initiatives affect actuaries. Join presenters on a tour of the current landscape and leave able to recognize:

    • the lush forests: The areas in which actuaries will continue to thrive, and perhaps gain even more productivity, as a result of government action,
    • the sandy beaches: While the sand may be hot (that is, there’s a possibility that actuaries will come under pressure), in general operating in these areas will be like a day at the beach and
    • the barren desert: Hot, dry, and dreadful – be on the look-out for these areas of increased intensity and scruitiny.
    Coordinator: Jennifer Lynn McGinnis, FSA, CERA, MAAA

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    Session 72: Current Topics Affecting Smaller Insurance Companies

    Format: Buzz Group
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsor: Smaller Insurance Company
    Facilitators: TBD

    You and other attendees will share your experiences from 2008-2009. How did the financial crisis impact how you did your job this last year end? Is the crisis helping or hurting small companies? What impact do you expect from the government response? How have priorities changed? How is product development being impacted? You will have the opportunity to share experiences, learn how others have addressed these issues and brainstorm where smaller insurance company actuaries will go from here.

    Coordinator: Donald M. Walker, ASA, MAAA

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    Session 73: Optimizing Model Performance and Process Flow

    Format: Panel Discussion
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsor: Technology
    Moderator: Carl Desrochers, FSA, FCIA, MAAA
    Presenters: Craig W. Reynolds, FSA, MAAA; Brian Rhoads, CFA*; Jim Skirvin*

    Insurers employ actuarial models to use in applications such as financial forecasting, product pricing, embedded value, risk management and valuation. The techniques available for reducing the total elapsed time from the extraction of source data to the analysis of results include the following: efficient data management, grid and cloud computing, replicating portfolios, scenario reduction techniques, cluster modeling and code optimization. Our panel will discuss some of these modeling and data management techniques that can be used to reduce the time that these intensive processes take and to allow more time for analysis and strategic decision making.

    Coordinator: Jeffrey Mark Pomerantz, FSA, MAAA

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    Session 74: Current RIMS Enterprise Risk Management Activity

    Format: Panel Discussion
    Time: 10:30 a.m. – 12:00 p.m.
    Session Sponsor: Joint Risk Management
    Moderator: TBD
    Presenters: TBD

    The Risk and Insurance Management Society, Inc. (RIMS) is a not-for-profit organization dedicated to advancing the practice of risk management. Founded in 1950, RIMS represents more than 4,000 industrial, service, nonprofit, charitable and governmental entities. The Society serves more than 10,500 risk management professionals around the world.

    This session will address the broader enterprise risk management (ERM) perspective which emerges when actuaries work with other risk professionals. In particular, the ERM program at RIMS will be discussed. Like the SOA, CAS and the greater actuarial communities, RIMS has been active in evaluating the role of ERM in addressing the global financial crisis. Both organizations have worked on the development of best practices.

    Coordinator: Robert F. Wolf, ASA, CERA, FCA, FCAS, MAAA

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    Session 76: Presidential Luncheon

    Time: 12:15 – 2:15 p.m.

    Cecil Bykerk Cecil Bykerk
    SOA President

    President Cecil D. Bykerk, FSA, FCA, MAAA, passes the gavel of office to Michael McLaughlin, CERA, FSA, FIA, MAAA, who delivers his presidential address.

     

     

    Cecil Bykerk Michael McLaughlin
    President-Elect’

     

     

     

     

    Cecil Bykerk Nassim Nicholas Taleb
    President Luncheon Keynote Speaker

    Join Presidential Luncheon Keynote Speaker Nassim Nicholas Taleb, an essayist, belletrist and researcher only interested in one single topic, chance (particularly extreme and rare events, the “Black Swans,” i.e. outliers); but it falls at the intersection of philosophy/epistemology, philosophy/ethics, mathematical sciences, social science/finance, and cognitive science. A post-trader, he mainly derives his intuitions from a two-decade long and intense practice of derivatives trading. He is distinguished professor of risk engineering at NYU - Polytechnic Institute; visiting professor at London Business School and co-director of the Decision Science Laboratory.

    The Presidential Luncheon is included in your registration fee. You may register your guest(s) for the luncheon by including $55 per person with your registration fee. Admission tickets are available for purchase at the meeting as space permits. Refunds will not be given.

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    Session 78: Living with Actuarial “Black Swans” – A Discussion with Nassim Nicholas Taleb

    Format: Panel Discussion
    Time: 2:30 – 4:00 p.m.
    Session Sponsors: Forecasting & Futurism, Investment, Financial Reporting
    Moderator: Alan Mills, FSA, MAAA
    Presenters: Stephen H. Conwill, FSA, MAAA; Max J. Rudolph, FSA, CERA, MAAA; Nassim Nicholas Taleb*; John E. Tiller, Jr., FSA, CERA, MAAA

    Following his luncheon address, Nassim Nicholas Taleb, author of The Black Swan, will answer questions posed by a select actuarial panel and by session participants. This session's purpose is to delve more deeply into the impact of “black swans” on the work of actuaries. Three prominent actuarial panelists – from the Forecasting and Futurism, Investment and Financial Reporting special interest sections – will first draw out Taleb about the practical implications of his work for actuaries. Afterwards, there will be an opportunity for you and other session participants to ask questions.

    Coordinators: Benjamin Steward Wadsley, ASA, MAAA; Gary A. Hatfield, FSA, MAAA; Jason A. Morton, FSA, MAAA

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    Session 79: Market-Consistent Valuation of Pension Plans

    Format: Panel Discussion
    Time: 2:30 – 4:00 p.m.
    Session Sponsors: Pension
    Core Credit: 90 minutes
    Moderator: TBD
    Presenter: Aaron R. Weindling, FSA, EA, FCA, MAAA

    Mark-to-market accounting has received a great deal of attention during the recent financial crisis. But before the current economic downturn, continued movement toward market-consistent approaches for pension plans seemed likely. This session will address topics such as:

    • what market consistency means,
    • how current actuarial practice differs from market-consistent valuation,
    • what significant standards or proposed standards have related to market consistency,
    • to what extent market-consistent approaches are applied in analogous areas,
    • how they might be applied to pension plans,
    • which issues would present the most significant challenges and
    • what some advantages and disadvantages would be to adopting these approaches.
    Coordinator: Michael A. Archer, FSA, EA, FCA, MAAA

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    Session 80: Managing Longevity Risk

    Format: Panel Discussion
    Time: 2:30 – 4:00 p.m.
    Session Sponsors: Pension
    Core Credit: 90 minutes
    Moderator: TBD
    Presenter: Siu-Hang (Johnny) Li, FSA

    Longevity risk, that is, the risk that future mortality improvement deviates from today’s assumption, can have a significant impact on pension and annuity liabilities. This session addresses various issues related to longevity risk, such as trends in longevity improvement, projection scales, stochastic modeling techniques and mortality-linked securities. The learning objectives of this session are twofold: (1) to understand the problem of longevity risk and (2) to develop an overview of the possible solutions to the problem.

    Coordinator: Marcus A. Robertson, FSA, FCIA

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    Session 81: The Importance of Actuaries in Financial Contracting

    Format: Lecture
    Time: 2:30 – 4:00 p.m.
    Session Sponsors: Health
    Moderator: TBD
    Presenter: Emil Burns Kraft, ASA, MAAA; Scott Rodgers, JD, MBA*

    Although it is common for actuaries to be involved in modeling the financial implications of contracts with financial risk sharing, it is uncommon for actuaries to participate in negotiating the language of the contracts themselves. Given that attorneys are typically not experts in financial risk sharing, that subtle changes to contract language can have significant financial implications and that contracts are the DNA of financial relationships, organizations that do not involve actuaries in negotiating contract language do so at their peril. This session will present a series of case studies highlighting the importance of actuarial involvement in contracting, as well as auditing provisions and performance measure/penalty definition.

    Coordinator: Susan Elizabeth Pantely, FSA, MAAA

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    Session 82: Modeling Anti-Selection and Optimal Pricing of Individual Medical and Small Group Insurance

    Format: Panel Discussion
    Time: 2:30 – 4:00 p.m.
    Session Sponsors: Health
    Moderator: Mary Kindel Van der Heijde, FSA, MAAA
    Presenter: James T. O'Connor, FSA, MAAA; D. Andrew Wei, FSA, MAAA

    We describe how anti-selective lapse arises in a competitive market and how the mix of insureds in a block changes as a result. In particular, we give an illustration of the well-known “assessment spiral” phenomenon. We determine the optimal pricing solution for various types of blocks, including a large class of blocks where the insurer can maximize profit by keeping rate increase moderate and lapse rate low. We also illustrate the impact of the market factors, including the underwriting cycles, and company-specific internal drivers related to risk selection, cost and product differentiation.

    This session includes details for key product design considerations, including optimal premium rate structures, family composition rating, use of policy fees and block versus asset-share pricing methodologies. We also discuss competitive considerations, particularly in the individual market.

    At the end of this session, you will gain a better understanding of

    • the conditions under which anti-selective lapse arises,
    • market price–based optimal pricing and how to estimate the market price using the company's own lapse experience,
    • how to determine the renewal rate increases for different blocks of business (varying by health status mix) to achieve optimal profit and minimum lapses,
    • implications for rate regulation and product design (in terms of rate guarantees) and
    • best practices for product design and pricing.
    Coordinator: Mary Kindel Van der Heijde, FSA, MAAA

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    Session 83: Life and Annuity Product Development Trends and Issues

    Format: Panel Discussion
    Time: 2:30 – 4:00 p.m.
    Session Sponsor: Product Development
    Moderator: Susan J. Saip, FSA, MAAA
    Presenters: Rhonda R. Elming, FSA, MAAA; Timothy C. Pfeifer, FSA, MAAA; Susan J. Saip, FSA, MAAA

    The popular year-in-review session returns to the annual meeting with an update on the latest trends and issues in product development. Annuity and life insurance topics will be addressed, including fixed, variable and indexed products. Discover what new features and designs have been driving recent sales.

    Coordinator: Susan J. Saip, FSA, MAAA

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    Session 84: Actuarial Efficiency – Doing More With Less

    Format: Panel Discussion
    Time: 2:30 – 4:00 p.m.
    Session Sponsor: Financial Reporting
    Moderator: TBD
    Presenters: TBD

    This session will address the ever-changing and increasing demands for information and how actuarial professionals are responding to these demands, while often operating with significant resource constraints. Today’s financial crisis has even accelerated these demands, and the session will focus on practical ways that actuaries are doing more by becoming more efficient. This may include efficiencies gained through technology solutions, reallocation of resources and even the transfer, consolidation or elimination of certain tasks and functions. What can be done almost immediately? What technology solutions are in place or on the horizon? How can I be better prepared for future demands? You will learn what can be done now to improve actuarial efficiency and be better prepared for dealing with future demands for information.

    Coordinator: Mark A. Davis, FSA, MAAA

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    Session 85: Capital Markets Chaos...Where Do We Go from Here?

    Format: Interactive Forum
    Time: 2:30 – 4:00 p.m.
    Session Sponsor: Financial Reporting
    Moderator: TBD
    Presenters: TBD

    Life insurers have had several options to effectively manage risk and finance redundant reserves related to their life insurance business. They could utilize reinsurance structures, captial markets solutions or retention of the business. How has today's chaos in the financial markets impacted these options and the underlying product assumptions?

    You will learn:

    • how reserve financing structures developed,
    • how products evolved around available strutures,
    • how the current market dislocation impacted structures and their dependent products and
    • what options and reactions are emerging in the aftermath.
    Coordinator: Larry N. Stern, FSA, MAAA

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    Session 86: MCEV<0: What Does It Mean for Investment Strategy?

    Format: Panel Discussion
    Time: 2:30 – 4:00 p.m.
    Session Sponsor: Investment
    Moderator: Noel Henderson Harewood, FSA, MAAA
    Presenters: TBD

    As market-consistent embedded value takes hold in the United States, many insurers are finding it impossible to sell fixed annuities competitively when held to a MCEV=0 pricing standard. Yet, few have elected to walk away from this market. Does the existence of “liquidity premiums” justify this practice? What are the implications for the insurer’s investment strategy when MCEV<0 products are sold? How “expensive” can a liability be before the investment manager balks? Presenters will address these and other related questions.

    Coordinator: Gary A. Hatfield, FSA, MAAA

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    Session 87: LTCI Risk Management in a New Economy

    Format: Panel Discussion
    Time: 2:30 – 4:00 p.m.
    Session Sponsor: Long-Term Care Insurance
    Moderator: Mark D. Newton, FSA, MAAA
    Presenter: Mark D. Newton, FSA, MAAA

    How has the economic turn of events during the past year affected long-term care insurance (LTCI) and what can be expected to happen with LTCI during the recovery period of the U.S. economy? Will sales be dampened for years to come or will the need and desire to protect assets grow to an all-time high? These uncertain times bring sales strategies and risk management to the forefront in preparation to weather this storm until the clouds finally break.

    Coordinator: David E. Kerr, ASA, MAAA

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    Session 88: Microinsurance

    Format: Panel Discussion
    Time: 2:30 – 4:00 p.m.
    Session Sponsor: International
    Moderator: Shiraz Jetha, FSA, CERA, FCIA, MAAA
    Presenters: Denis M. J. Garand, FSA, FCIA; Michael James McCord*

    Microinsurance is basically small levels of insurance coverage touching all the traditional actuarial disciplines. It is typically used in conjunction with microfinance to help fight poverty in many areas outside of North America. Our panel will give an introduction to the concepts of microinsurance, as well as giving some examples of how it has been put into practice.

    Coordinator: Carl I. Hansen, FSA, EA, FCA, MAAA

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    Session 89: Building and Managing Your Career as an Entrepreneur

    Format: Panel Discussion
    Time: 2:30 – 4:00 p.m.
    Session Sponsor: Entrepreneurial Actuaries
    Moderator: Ken Mitchell*
    Presenters: James M. Glickman, FSA; Roger W. Smith, FSA, CERA, MAAA

    Whether a solo practitioner or employed at a large company, you have the opportunity to develop and energize your career by acting as an entrepreneur. Entrepreneurial skills (such as consultative selling, identifying business opportunities, careful financial planning and project management) are just as useful for creating value within a large company as they are for creating private-practice client value. People are not born successful entrepreneurs and they do not become entrepreneurs overnight once successful. People become successful entrepreneurs by carefully cultivating entrepreneurial skills throughout their careers. This interactive discussion, with a panel of experienced actuaries, will help you build and manage your career as an entrepreneur.

    Coordinator: Emil Burns Kraft, ASA, MAAA

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    Session 90: Solvency II and a New Enterprise Risk Management Paradigm

    Format: Panel Discussion
    Time: 2:30 – 4:00 p.m.
    Session Sponsor: Joint Risk Management
    Moderator: TBD
    Presenters: TBD

    Whether a solo practitioner or employed at a large company, you have the opportunity to develop and energize your career by acting as an entrepreneur. Entrepreneurial skills (such as consultative selling, identifying business opportunities, careful financial planning and project management) are just as useful for creating value within a large company as they are for creating private-practice client value. People are not born successful entrepreneurs and they do not become entrepreneurs overnight once successful. People become successful entrepreneurs by carefully cultivating entrepreneurial skills throughout their careers. This interactive discussion, with a panel of experienced actuaries, will help you build and manage your career as an entrepreneur.

    Coordinator: Emil Burns Kraft, ASA, MAAA

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    Session 92: Design Your Own Community Health Plan

    Time: 4:15 – 6:45 p.m.
    Session Sponsor: Health
    Facilitators: TBD

    This program offers the opportunity to participate in a novel experiential learning session. Using a computer-based program called CHAT ®, you will design a basic health plan to cover the uninsured. The catch? The money available is one-third less than typical employer-based coverage. How will you decide what coverage is important? What does society consider valuable coverage? The session will provide a broad range of perspectives in policy, economics and health care and audience participation is vital.

    In the midst of the current political climate related to health care, this is a relevant session for everyone, not just health care actuaries

    The session will be limited to 20 participants and is free of charge.

    Coordinator: Beth K. Grice, FSA, MAAA

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    Session 94: International Section Reception

    Time: 6:00 – 9:00 p.m.
    Session Sponsors: International, Chinese Actuarial Club, International Association of Black Actuaries, Caribbean Actuarial Association

    The SOA International Section, the Chinese Actuarial Club, the Caribbean Actuarial Association and the International Association of Black Actuaries are please once again to host a reception at the SOA 09 Annual Meeting & Exhibit. Please join your colleagues from around the world for an evening of refreshments, guest speakers and entertainment!

    This reception is open to all meeting attendees and their registered guests. There is a nonrefundable fee of $50 per person. Please include the additional fee with your registration.

    Coordinator: Carl I. Hansen, FSA, EA, FCA, MAAA

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