Agenda

Day 3: Tuesday, October 21

Session 46: Education & Research Section Continental Breakfast

While open to all meeting attendees, join fellow Education & Research Section members for a short presentation on some of the section activities.

This breakfast is open to all meeting attendees free of charge. If you are interested in attending, please stop by the SOA registration desk to check availability.

Coordinator: Steven Lane Craighead, ASA, MAAA, CERA

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Session 47: Product Development Section Hot Breakfast

Join us for breakfast to hear about upcoming education and research activities of the Product Development Section while networking with fellow section members. This is a great opportunity to discuss upcoming topics in product development.

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. If you are interested in attending, please stop by the SOA registration desk to check availability. Refunds will not be given..

Coordinator: R. Dale Hall, FSA, MAAA, CERA

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Session 48: Joint Risk Management Section Hot Breakfast

Join the Risk Management Section for breakfast and to learn about the latest developments in section activities.

This breakfast is open to all meeting attendees. There is a nonrefundable fee of $10 for Joint Risk Management Section members and $15 for all others. If you are interested in attending, please stop by the SOA registration desk to check availability. Refunds will not be given.

Coordinator: Matthew P. Clark, FSA, MAAA

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Session 50: The Implications of ERM

Get an inside look at how enterprise risk management (ERM) is changing the insurance industry. As enterprise risk management spreads across the insurance industry, the decisions that are made and the ways companies operate are changing. During this session, you will hear from several companies that are living through this transition. Come hear about the changes they have encountered and the challenges they have faced.

Value Ladder: Employer/Market

Coordinator: Matthew P. Clark, FSA, MAAA

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Session 51: An Actuarial Perspective on Structured Investment Products

Structured investment products have widespread applications in insurance and financial services. They range from alternative investments to traditional fixed income products to tailored products that meet a specific need, hedge a unique liability or cash flow match a non-traded liability. These are all applications that lie within the core competencies of actuaries, yet many actuaries have not fully explored the possibilities within the structured investment product area.

You will benefit from this session by:

• Obtaining a general introduction to structured investment products;
• Learning about the various applications of the products;
• Gaining a better sense for the potential consumers of structured investment products; and
• Exploring how traditional actuarial techniques can be applied to this market and what opportunities exist for actuaries in this space.

A similar session was presented at this year’s Life Spring Meeting, and is back by popular demand!

Value Ladder: Task/Process

Coordinator: Allan Mark Levin, FSA, MAAA, FIA

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Session 52: LTC Claims Management of the Future

Join us to learn more about the emerging trends in claims intervention and how future changes in the delivery of care and services for LTC claimants will alter claims management. Also find out more about the actuarial measure of these changes.

After this session you will be able to:

• Distinguish among different models of care management;
• Determine impact on claim costs; and
• Learn new tools.

Value Ladder: Industry

Coordinator: Amy Pahl, FSA, MAAA

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Session 53: Decisions, Decisions (about Retirement)

There are a host of decisions that an individual needs to make about retirement. This session explores the choices that individuals face, 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.

We'll explore these choices and decisions. Actuaries advising employers will gain an understanding of the issues facing individuals embarking on retirement, resources available through the actuarial profession and how employers may be able to help them with their decisions. A financial planner will discuss what factors are reflected in the advise she provides to her clients. Insights will be offered from SOA research including the Risk Survey series (2001, 2003, 2005 and 2007) and focus groups on where there are gaps and misunderstandings in individual knowledge. Information will be provided on what is available through the Actuarial Foundation that can help individuals with decisions. Actuaries building products for individual risk management will also gain valuable insights from this session.

Value Ladder: Industry

Coordinator: Anne M. Button, FSA, MAAA, EA

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Session 54: The Pension Protection Act: A Recap of Recent Guidance

In this technical session, panelists review and break down recent PPA-related guidance affecting pension plans.

The Pension Protection Act (PPA) represents the greatest overhaul of the pension funding and disclosure rules since the passage of ERISA. The panel will discuss the PPA-related guidance issued this year, and will cover areas in which future guidance might be expected.

Value Ladder: Task/Process

Coordinator: Sheldon A. Gamzon, FSA, MAAA, MSPA, FCA

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Session 55: Improving the Predictability of DB Plan Costs in Canada and the United States (Canceled)

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Session 57: Transparency and Provider Issues—Impact on Health Care Affordability and Quality

This session will discuss transparency in health care information and the impact on cost and quality, as well as behavior of patients and providers. See what various players (insurance companies, CMS, providers) are doing to increase transparency and the desired results. Learn about the connection to provider contracting, benefit design and consumerism. We will also discuss the impact of regulation and challenges to making changes. How can the actuary contribute? How will transparency or pay-for-performance impact on affordability and delivery of quality health care?

Value Ladder: Industry

Coordinator: Beth K. Grice, FSA, MAAA

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Session 58: Sales Force Modeling, an Essential Tool for Managing Distribution Effectiveness (Canceled)

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Session 59: A Futurism Primer—Case Studies using Futurism Methods

What is futurism and what are futurism techniques? Learn how actuaries can apply the techniques of the Delphi method and prediction market method to their work.

This session provides a general background on futurism, futurism techniques and their applicability to actuarial work. The Delphi method and its use in 20 Year Forecast of Select US Economic Variables (a 2005 SOA study) will be presented. The prediction market method and its use in Persistence of Insured Mortality Risk Differentials (a 2007 SOA study) will also be presented.

You should leave the session with an understanding of these issues:

• What futurism is and what futurism techniques are;
• Why actuaries should be interested in futurism and futurism techniques; and
• What types of results the application of futurism techniques can produce.

Value Ladder: Task/Process

Coordinator: Ben H. Wolzenski, FSA, MAAA

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Session 60: Predictive Models—Innovation versus Implementation

Predictive models have been implemented across life and health organizations for a broad range of financial and actuarial applications such as pricing and underwriting, profiling high risk participants and experience studies. These models increasingly use nonclaims-based sources of data as predictive inputs. Examples of new data sources include lifestyle-based data, consumer and credit data, laboratory values, health risk appraisal data and other inputs from electronic medical records or transactional detail.

However, the evolution and innovation of these models have outpaced their diffusion and adoption due to a variety of factors. These include availability of high quality data, regulatory and privacy concerns, strategic buy-in and barriers in model implementation, monitoring and updating. More importantly, the additional predictive power to be gained using nonclaims-based data is the subject of heated debate.

You will gain insight into the latest and most innovative predictive models used today and will also learn to recognize the challenges of model implementation and integration into current processes. You will be able to answer questions such as: Are these models really better? Are they too sophisticated for practical use? Can one quantify the return for an additional point of R-squared in predictive performance? Is there a ceiling on predictive performance that even the greatest modeling innovations cannot penetrate?

Value Ladder: Task/Process

Coordinator: Vincent Michael Kane, FSA, MAAA

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Session 61: Hot Topics in Life Insurance Products and Marketing

This session will discuss current and emerging trends in life insurance product development and in the marketplace for these products.

Join us for a dynamic discussion of hot topics in the life insurance arena, including:

• Product design and market trends for protection products (including UL with secondary guarantees, term and return of premium term) in response to competitive pressures and the
availability of capital management solutions;
• Opportunities and concerns related to accumulation products, including universal life, indexed life and variable life insurance;
• Development and marketing of LTC combination products;
• Reinsurance sector challenges created by consolidation, financial woes, advanced age sales and other industry changes; and
• The impact and continued growth of secondary markets for life insurance.

Attend this session to gain awareness of some of the key challenges and opportunities for the life insurance market.

Value Ladder: Employer/Market

Coordinator: Christine E. Dugan, FSA, MAAA

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Session 62: Medicare Advantage, Session 3—Technical Topics for Part C and Part D

This will be the final of three sessions on Medicare Advantage and will be more technical in nature than the prior two sessions. It will cover several topics including risk adjustment for Part C and Part D. This session will include further detail on topics covered in the first two MA sessions. It will also cover bid development and the rate filing aspect of MA, MA-PD and PDP, with reference to the product/plan filing that the rates must clearly correspond with. This session will also cover the development of manual rates, use of actual plan claim experience, the adjustment and projection of historical claim experience to the contract year and the blending of manual and projected experience data for partially credible bids. You will come away with a better understanding of what it takes to successfully submit bids for Part C and Part D.

Value Ladder: Employer/Market

Coordinators: Daniel W. Bailey, FSA, MAAA; Barbara P. Niehus, FSA, MAAA

Follow up to: 27, 42

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Session 63: Federal Income Tax Implications of Principle-Based Reserves

In January the IRS issued Notice 2008-18 in a cooperative effort with the industry and actuarial profession to provide advance guidance on in-process principle-based reserve development. While providing reassurance in some areas, the Notice identified certain other areas of Treasury/IRS concern. The Notice offered a wide range of potential solutions for consideration. These solutions align well with modifications under consideration to simplify life PBR for certain products issued by smaller companies. This session will discuss the Treasury concerns and provide an update of what is under consideration by the industry and profession to address the concerns.

Value Ladder: Industry

Coordinator: Arthur V. Panighetti, FSA, MAAA

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Session 65: A Look into the Future—Economic Forecasts for 2009

With a volatile year nearly in the books, actuaries are beginning to turn their eyes to 2009. Join us as we engage several actuaries and economists in a discussion of what lies ahead.

Experts will discuss a range of economic issues—from interest rates and inflation to credit markets and equity returns—that are of particular relevance to insurance companies and pension plans. Speakers will include both practicing actuaries and academic economists.

You will benefit from:

• Gaining an understanding of the potential risks facing general economic conditions in the year ahead;
• Hearing an outside, non-actuarial perspective on the market conditions in which insurers and pension plans will operate; and
• Having a chance to ask questions of noted experts about specific economic concerns that may be on your mind.

Value Ladder: Task/Process

Coordinator: Andrew H. Dalton, FSA, MAAA

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Session 66: Tools to Help Me with My Treaty

The ACLI is updating its Treaty Source Book, and the Reinsurance Section Council’s treaty project group is providing additional information that will add value. The session will identify the areas that have caused the greatest controversy. How were these sensitive areas resolved, and what should you know before your next treaty negotiation?

The ACLI published the Treaty Source Book as a source of information for companies in drafting life insurance treaties. The Reinsurance Section Council’s basic education subgroup set up a project team to add color to this document. The ACLI is now in the process of revising their work. At this session we will learn more about the ACLI’s project, as well as the ways that the reinsurance section council hopes to add value to this process. In particular, presenters will highlight articles that caused the greatest controversy and discuss the resolution.

Value Ladder: Industry

Coordinator: David Addison, FSA, MAAA

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Session 67: Protection Products: Present and Future

This session will explore recent trends and current issues facing secondary guarantee UL, term and current assumption (low cost) UL products.

With the switch to 2001 CSO mostly complete for protection products, the industry is looking ahead to see what the future holds. Hear about the current competitive environment and recent sales experience. Industry experts will also update you on future trends for these products.

Value Ladder: Employer/Market

Coordinator: Robert P. Stone, FSA, MAAA

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Session 68: How Important is Lifetime Income to Retirees?

What type of income do people need in retirement? As defined benefit pension plans have lost their luster, more and more people are retiring with a single pot of money.

Several studies have shown that while people say they prefer lifetime income, they actually choose lump sums when given a choice. In 2005, focus groups examined how people were making investment decisions in retirement. This year, a new SOA/LIMRA/InFRE study—Phase II of that work—examines how people are making investment decisions in retirement and what they are considering. Presenters will explore the Phase II results of the study on how people provide for their retirement and learn what the study found out including the answer to these questions:

• How are people managing their money?
• How important is lifetime income?
• What do people in other countries do?
• How do people make decisions about investing their assets?
• Are people spending their pot of money too fast?

Value Ladder: Employer/Market

Coordinator: Anne M. Button, FSA, MAAA, EA

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Session 69: Game On! PPA Experiences in 2008 … and Unresolved Issues

This session will review actual experience in working under Pension Protection Act’s (PPA’s) new rules in 2008 and discuss the status of still unresolved issues.

Pension Protection Act (PPA) is in effect. This session will explore what we have learned and how it has affected our clients in 2008. Burning credit balances, actuarial certifications and disclosures are important topics. We will also review those issues that remain unresolved and prognosticate about next year.

This session will provide participants with a great opportunity to share experiences with PPA and discuss unresolved issues.

Value Ladder: Task/Process

Coordinator: Marvin Lee Stokes, FSA, MAAA, EA, FCA

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Session 70: Principle-Based Approach for Smaller Companies

Principle-based reserves and risk-based capital present one of the largest challenges that actuaries for smaller companies have ever had to face. This session explores several important features of the current proposals from the perspective of smaller companies, including several simplification proposals (stochastic exclusion test, credibility criterion, and exemption from submitting experience), experience studies, setting assumptions and margins, and systems issues.

Attendees will learn high level information about several topics that are critical to the implemention of the Principles Based Approach for smaller companies, such as:

• Summary of the current situation and prognosis for:
• Life insurance – RBC and reserves,
• Annuities – RBC and reserves,
• FIT;
• Simplification proposals, including:
• Stochastic exclusion test,
• The credibility criterion, and
• Exemption from submitting experience;
• Experience studies;
• Setting assumptions and margins; and
• Systems issues.
• How can companies supplement their resources?

The specific topics may change as events unfold.

Value Ladder: Task/Process

Coordinators: Jerry F. Enoch, FSA, MAAA; Ellen J. Gorman, FSA, MAAA

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Session 71: GAAP Update

Learn all about emerging US GAAP issues in this open forum in which experts will focus on implementation issues encountered by affected companies. Experts will discuss:

• IFRS and its relationship to US GAAP;
• FAS 157, including impact on FAS 107 disclosures; and
• Emerging guidance on other GAAP issues.

You will gain an understanding of the new accounting standards and guidance and learn how life insurance companies are interpreting and applying these standards.

Value Ladder: Task/Process

Coordinator: Rod L. Bubke, FSA, MAAA

Follow up: 88

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Session 73: Preparing for PBA and Stochastic Modeling

Long-term care insurance models being developed for principle-based reserve purposes incorporate complex stochastic approaches. This session will discuss those approaches including how interaction effects of mortality, lapse and claim incidence are handled. You will gain an understanding of the processes and calculations of a prototype Excel-based model that incorporates the key principles and concepts of the principle-based reserves stochastic model.

Value Ladder: Task/Process

Coordinator: Amy Pahl, FSA, MAAA

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Session 74: The Revised Qualification Standards and Continuing Professional Development Apply to You!

On January 1, 2008 revised Qualification Standards, which apply to members of all five U.S.-based actuarial organizations, became effective. The Society of Actuaries has issued a continuing professional development requirement exposure draft that could become effective in 2009. This professionalism session addresses the impact that these requirements will have on members.

Clearly, based on the Code of Professional Conduct, actuaries must be qualified to do the work they undertake. The pre-2008 Qualification Standards applied specifically to actuaries providing prescribed statements of actuarial opinion (PSAO), that is, statements of opinion required by laws, rules or regulations. The 2008 revisions expand the scope of the Qualification Standards to all actuaries who in the course of performing actuarial services provide a statement of actuarial opinion (SAO)—prescribed or not. This session will help you understand what constitutes a statement of actuarial opinion covered by these revised Qualification Standards.

Additionally, the SOA board of directors approved a motion establishing the continuing professional development (CPD) requirement for all members in March 2007. A proposal was released for exposure at the end of 2007. The board commissioned a group to oversee development of a requirement for approval at the June 2008 meeting. This session will compare the U.S. Qualifications standards with the SOA CPD requirements and discuss their interrelationships.

Value Ladder: Professionalism

Coordinator: Tom Bakos, FSA, MAAA

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Session 75: Actuarial and IT Departments: Making the Marriage Work

Are there barriers between the actuarial and IT cultures that keep you from collaborating on technology issues? See recent survey results that reveal the current state of the relationship between actuarial and IT departments.

In partnership with the Technology section, Gartner, Inc., an IT research advisory firm, undertook a study to understand the business technology priorities of actuaries and better understand the relationship between actuarial and IT departments. The findings from this survey have been correlated to existing Gartner research to reveal a more complete picture of the cultural and organizational challenges that both IT staff and actuaries encounter when rolling out new technology. From comparing how IT and actuarial departments perceive business priorities to understanding the dynamics of information technology and operational technology, these new findings illuminate what steps can be taken to improve your relationship with IT staff.

Value Ladder: Employer/Market

Coordinator: Carl Desrochers, FSA, MAAA, FCIA

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Session 76: High Impact Communication

Discover how to communicate technical information to nontechnical audiences in more influential and meaningful ways. Increase your toolbox of communication techniques that will greatly enhance your value to your organization.

• Do you struggle to meaningfully communicate technical concepts to a non-technical audience?
• Are you frustrated by having only 10 minutes (or less) to present hours of analysis to senior management?
• Do your presentations usually involve going through mounds of data leaving your audience confused or overwhelmed?
• Do you wonder how to better engage your audience when you communicate your analysis or pricing results?
• Would you like to have more impact on your audience when you present your work product?

In this interactive session, you’ll learn key techniques to become a high impact communicator. You’ll learn these techniques experientially through exercises, role plays and video. Specifically, you’ll discover:

• How to bring more presence to your presentations;
• How to make a greater impact on your audience so that they’re stimulated and want to know more;
• How to present in a way so your non-technical audience members really get it;
• How to answer those tough questions without going into all the actuarial detail, yet still be accurate and ethical; and
• Three communication techniques you MUST add to your repertoire that will increase your effectiveness overnight.

Value Ladder: Task/Process

Coordinator: David V. Axene, FSA, MAAA, FCA

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Session 77: Marketplace Relevance Action and Environmental Scanning (Canceled)

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Session 78: The Fundamentals and Practical Considerations of Life Insurance Company Expenses—A Teaching Session

For many life insurance companies, understanding and management of expenses represent a significant corporate objective. Often this not only proves to be a challenging exercise, but one that involves a great deal of time and resources. What are the significant methods that companies use to measure their expenses, evaluate their underlying drivers and utilize this information to steer their businesses?

In this session, former SOA President Sam Gutterman, FSA, will present some of the fundamental conceptual and practical considerations involved in this process. Using material from his recently published Society of Actuaries’ textbook, A Comprehensive Guide to Measuring and Managing Life Insurance Company Expenses, Gutterman will provide an overview of some of the important issues involving expense allocation, analysis, measurement and application to significant actuarial activities including pricing, financial reporting and expense management. A portion of this teaching session’s time will be reserved for open discussion and questions.

Value Ladder: Task/Process

Coordinator: Steven C. Siegel, ASA, MAAA

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Session 80: Presidential Luncheon

Time: 12:15 – 2:15 p.m.

Cecil D. Bykerk, FSA, MAAA, FCA, receives the gavel of office from President Bruce D. Schobel, FSA, MAAA, FCA and delivers his presidential address.

Bruce Schobel
SOA President

 

 

 

Cecil D. Bykerk
President-Elect

 

 

 

Join keynote speakers Bob Beckel and Cal Thomas, USA Today’s “Common Ground” columnists, as they demonstrate with humor and civility how even people of strikingly different political views can reach agreement on contentious issues if they place the interests of the country ahead of political gain or personal advantage.

The Presidential Luncheon is included in your registration fee. If you are interested in registering your guests for the luncheon, the fee is $50. Stop by the Society of Actuaries’ registration desk before 10:00 a.m. on Tuesday to see if space is available. Refunds will not be given.

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Session 82: An Actuarial Perspective on Measuring Operational Risk

Learn how insurance companies are incorporating operational risk into their enterprise risk framework. Historically, operational risk has not tended to fall within the domain of many actuaries. With the evolution of enterprise risk management, actuaries need to be aware of operational risk methods.

In this session, you will:

• Hear about and discuss the major categories of operational risk facing companies today;
• Be exposed to technologies used to identify, measure and mitigate operational risk; and
• Learn how companies are incorporating operational risk into their enterprise risk frameworks.

Value Ladder: Employer/Market

Coordinator: Matthew P. Clark, FSA, MAAA

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Session 83: The Mortgage Crisis: Were Insurance Companies and Pension Plans Prepared?

Much has been written about the mortgage crisis—and the credit crunch more generally—over the past year. However, with only a few exceptions, the media has focused little attention on the impact these events have had on companies most vulnerable to write-downs in collateralized securities—life insurers and pension plan trusts.

This session will critically analyze the state of affairs from two perspectives: 1) life insurers/pension plans that hold collateralized securities in their portfolio and 2) monoline insurers and financial guarantors that insure the holders of these securities against loss upon default.

You will benefit by:

• Better understanding how insurers and pension plans have been affected by recent economic conditions;
• Learning the key risks of these securities from the perspectives of a security holder and a security underwriter; and
• Gaining insight on the valuation of these securities so that you can be better prepared for the next risky class of securities that comes into style.

Value Ladder: Task/Process

Coordinator: Andrew H. Dalton, FSA, MAAA

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Session 84: Update on IDEC Disability Income Study (Canceled)

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Session 85: SOA Survey Results on Alternative Tools for Mortality Risk Management, Early Duration Claims and Life Settlements

The Committee on Life Insurance Mortality and Underwriting Surveys of the Society of Actuaries completes surveys every 12-18 months. This session will provide the results of three of our most recent surveys on Alternative Tools for Mortality Risk Management, Early Duration Claims and Life Settlements. If one or more of these topics is of interest to you, join us to find out the latest information on what the industry is doing on these three timely topics.

Value Ladder: Employer/Market

Coordinator: Allen M. Klein, FSA, MAAA

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Session 86: Target Practice with Retirement Replacement Ratios

Hitting a target is relatively easy from a distance of three feet. However, retirement targets usually seem miles away. In order to have a chance of hitting the target, individuals need a sniper’s scope. Replacement ratios provide such a view. The session will discuss Aon’s latest study of replacement ratios. In addition, presenters will discuss the view from three feet away, such as the aspects of pre-retirement planning that individuals must consider in making a successful transition.

Value Ladder: Employer/Market

Coordinator: Marvin Lee Stokes, FSA, MAAA, EA, FCA

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Session 87: Late-Breaking Developments for Pension Plans

Come hear about recent pension-related developments, court cases and guidance from the IRS, Treasury, PBGC and DOL.

In this session, presenters will review recent developments affecting pension plans and discuss pension-related guidance during 2008 issued by the IRS, Treasury, PBGC and DOL. Recent court cases involving retirement plans and other current issues will also be covered. For the most part, this session will not cover the guidance presented in the session titled The Pension Protection Act: A Recap of Recent Guidance.

You will walk away from this session with an understanding of the recent legislation, regulatory guidance and legal issues affecting defined benefit plans.

Value Ladder: Task/Process

Coordinator: Thomas M. Sablak, FSA, MAAA, EA, FCA

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Session 88: GAAP Update Workshop

This workshop is a follow-up to the open forum held on the same topic. The workshop focuses on emerging US GAAP issues, with emphasis placed upon implementation issues encountered by affected companies. Participants will discuss GAAP guidance on current GAAP issues, with particular emphasis on IFRS and FAS 157.

You and other participants will discuss personal experiences related to the implementation of these accounting standards and how issues are resolved. Additionally, the group will share insights into how the standards may affect the reporting of different product designs, features and transactions. You’ll take away practical solutions for implementing these standards.

Value Ladder: Task/Process

Coordinator: Rod L. Bubke, FSA, MAAA

Follow up to: 71

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Session 89: Current Topics Affecting Smaller Insurance Companies

Actuaries in smaller insurance companies and companies with smaller actuarial staffs are finding it more difficult to keep up with current developments. In this session, you will have the opportunity to learn about current topics, to contribute to the discussion and to network with actuaries in similar positions.

The session will consist of groups at different tables discussing one of the following topics. You will have the opportunity to change tables midway through the session.

• Principle-Based Approach to Reserves and Capital
• Longevity Risk
• Financial Reporting Issues
• Product Development Issues
• Survival of Smaller Insurance Companies
• Reinsurance and Risk Management Issues

Other topics may be discussed, depending on the interests of the attendees.

Value Ladder: Employer/Market

Coordinator: Ellen J. Gorman, FSA, MAAA

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Session 90: Aging Population: Opportunities and Risks

This session will explore the impact of the aging population on the insurance industry. The goal will be to highlight specific risks and opportunities both for companies and for actuaries.

Learn about what specific risks insurance companies are exposed to due to current and future demographic changes in the population. Which of these risks can our industry turn into opportunities? Which risks can be hedged, pooled, leveraged or avoided entirely, and how might this be done? This session will explore specific product opportunities for both life products and annuity/pension products. It will also address what insurance companies, together with other financial organizations, need to do in order to protect against—and benefit from—the various risks associated with an aging population.

Value Ladder: Industry

Coordinator: James C. Christou, ASA, MAAA

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Session 91: Private LTC and Public/Private MLTC

This session will cover both private long-term care insurance and the managed long-term care programs of Medicare Advantage organizations for members who are eligible for both Medicare and Medicaid. A third speaker will compare and contrast the two.

Participants of this session will gain an understanding of how medical management concepts, similar to those used for health insurance, are being translated to long-term care services for the elderly in both the private and public markets. The introduction will define private long-term care insurance, including the population served, types of contracts offered, typical benefits provided and general market trends. A discussion will follow on cost containment strategies that are being used by successful private insurance carriers.

From private to public, the program will shift to focus on the risks for long-term care services including Medicare Advantage and PACE, as well as special needs programs covering the institutionalized and dually eligible populations. This includes an examination of the integration of risks for acute and long-term care services through Medicare and Medicaid funding streams; the integration of managed medical and custodial care, and the medical management programs used by successful plans. One example is the Evercare approach that emphasizes the role of the nurse practitioner in order to reduce unnecessary hospital care.

The program will conclude with a comparison of the successful management techniques used in each population and the potential future direction for improved management.

Value Ladder: Industry

Coordinators: Daniel W. Bailey, FSA, MAAA; Allen J. Schmitz, FSA, MAAA

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Session 92: Long-Term Health Cost Projections (Canceled)

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Session 93: Will State LTC Partnership Programs Generate Medicaid Savings?

The passage of the Deficit Reduction Act of 2006 authorized the expansion of public-private Partnership LTC programs. Purchasers of private LTC policies would be able to qualify for Medicaid LTC benefits without exhausting all of their assets. For each dollar of benefits received from a Partnership LTC policy, a dollar in assets would be disregarded for purposes of Medicaid eligibility. Many states view the asset protection as a significant incentive for the purchase of private LTC insurance and are moving aggressively toward implementation of these programs. However, there does not appear to be a broad consensus that they will ultimately reduce Medicaid LTC expenditures.

This session will explore the potential for Partnership Medicaid savings from various perspectives, including the states that have had Partnership programs for many years, the Department of Health and Human Services, the Government Accountability Office (which published a recent report on potential Medicaid savings from Partnership), the insurance industry and the academic community. The session will include discussion of demographic, morbidity and cost of care projections.

You will gain a better understanding of how Partnership programs operate, the trends that are generating public policy concern about how aging baby boomers will fund their long-term care needs and the potential for this public-private Partnership to address those concerns.

Value Ladder: Employer/Market

Coordinator: Amy Pahl, FSA, MAAA

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Session 94: Distribution Economics

This session will examine the latest developments in managing the distribution system of your business, particularly focusing on a set of disciplined economic metrics as a tool to understand how your company can achieve additional success with the distribution function.

The distribution system of your business drives 100 percent of premium production, consumes 50 percent-plus of nonclaim costs, influences business quality, is integral to your brand and poses a variety of compliance challenges. Success in the distribution business requires more disciplined management, supported by advanced analysis of economic and market data. Insights into the needs, wants and behaviors of producers, field leadership and distribution partners along with a clear understanding of the underlying economics of their respective businesses are critical for achieving profitable growth in a mature marketplace. Economic tools can include a profit and loss framework, embedded value, relative cost-to-serve and various measures of business quality. This session will explore these concepts and others to help you better understand and manage your distribution system business.

Value Ladder: Employer/Market

Coordinators: Kevin J. Pledge, FSA, FIA; Andy Ferris, FSA, MAAA

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Session 95: Valuation Software Enhancement for PBR

Principle-based reserves (PBR) are gaining momentum. This session will help participants understand the implication of PBR on the valuation software available in the market.

With the advent of principle-based reserves (PBR), a lot more computing power will be necessary to calculate reserves. Stochastic modeling will become an integral part of reserve calculation requiring enhanced computing capabilities. The panel discussion will present various approaches vendors are using to adapt their software to the new requirement.

Value Ladder: Task/Process

Coordinators: Carl Desrochers, FSA, MAAA, FCIA; Mike Y. Leung, FSA, MAAA

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Session 97: International Section Reception

Come network and socialize with the International Section! This is a great opportunity to connect with other international actuaries while enjoying cocktails, hors d'oeuvres, lively conversation and karaoke!

This reception is open to all meeting attendees and their registered guests. There is a nonrefundable fee of $50 per person. If you are interested in attending, please stop by the SOA registration desk to check availability. Refunds will not be given.

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

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