Agenda

Day 4: Wednesday, October 22

Session 99: Financial Reporting Section Hot Breakfast

Please join us for an update on the council's activities and a great networking opportunity.

This breakfast is open to all meeting attendees. It is free of charge for Financial Reporting Section members. There is a nonrefundable fee of $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: Basha H. Zharnest, FSA, MAAA

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Session 100: Long-Term Care Insurance Section Hot Breakfast—Litigation & Public Relations Management

This session provides an opportunity for LTC actuaries and interested parties to get together and network on an informal basis. A brief update of the activities of the LTCI Section will be followed by a presentation on managing litigation and public relations issues. In attending this session, you'll get a glimpse at what is happening at the company and regulatory level in dealing with image and litigation issues relating to the LTC insurance market.

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

Value Ladder: Industry

Coordinator: Amy Pahl, FSA, MAAA

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Session 101: Health Section Hot Breakfast

Take this opportunity to network with other members and friends of the Health Section and discuss key developments and recent trends in health care financing.

Come to establish and renew important industry relationships, find out what health care actuaries are thinking about and hear an update on Health Section-sponsored research.

This breakfast is open to all meeting attendees. There is a nonrefundable charge of $10 for Health Section members and $20 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: Sudha Shenoy, FSA, MAAA, CERA

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Session 103: Risk Aggregating Techniques

Current industry trends in the aggregation of insurance risks are covered, reflecting the correlation between risks and the techniques employed to address the challenges faced by practitioners.

This session will focus on the techniques insurance companies are using to aggregate their risks. Companies need to balance the need for information that is accurate and timely. Learn the implications of using alternative approximation techniques. Find out how companies are using correlation matrices and the techniques they are using to set the parameters.

Value Ladder: Employer/Market

Coordinator: Matthew P. Clark, FSA, MAAA

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Session 104: A Behavioral Finance Perspective on Actuarial Science

Actuarial science relies heavily upon the use of economic models, but often the real world is not so convenient. In economics, the failure of certain models has given rise to the rapidly growing field of behavioral finance. Behavioral finance picks up where our models leave off; it explains irrational or suboptimal behavior by appealing to non-economic factors such as an individual's preferences or personality.

Behavioral finance is beginning to appear in the actuarial literature. This session will introduce the fundamentals of behavioral finance and review its applications to actuarial science. A panel of experts will highlight important, recent developments in the literature and explain how academic developments in this field could soon impact your daily work.

You will benefit from:

• Receiving a thorough introduction to the field of behavioral finance;
• Learning how behavioral finance interacts with actuarial science; and
• Interacting with a panel of experts in this emerging field.

Value Ladder: Task/Process

Coordinator: Donald R. Krouse, FSA, MAAA

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Session 105: Tax Treatments and Traps—Life Products and Their Usage

What unique product tax issues are the industry experts wrestling with this year, and how should they be affecting your company's product and marketing strategy? In this session you will learn about two hot product tax topics and have the opportunity to ask questions of the experts.

At the end of this year the 1980 CSO will become history, and the 2001 CSO becomes the reasonable mortality table for calculating product tax limits. Companies have been busily redesigning and refiling their products. This session will examine some of the product tax issues that may arise in implementing the 2001 CSO.

There have been a number of IRS rulings in recent years on policy exchanges. This session will examine these rulings and highlight the tax treatment and traps for your company in dealing with exchanges.

Finally, we will allow time to answer your product tax questions.

Value Ladder: Employer/Market

Coordinator: Arthur V. Panighetti, FSA, MAAA

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Session 106: Payout Annuities: The Past, the Present and the Future

Learn about recent trends and mortality experience in the payout market. Industry experts will discuss what the industry is doing regarding payout solutions for the aging population.

Hot off the press—come hear the key findings of the SOA's Mortality Experience Study of Individual Payout Business. This study provides the industry with mortality experience that most individual companies lack. Industry experts will also discuss recent payout annuity design trends/issues and what's being done to capture their share of the individual payout market.

Value Ladder: Employer/Market

Coordinator: Susan J. Sell, FSA, MAAA

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Session 107: The State of Defined Benefit Plans Worldwide

What on earth is going on with defined benefit (DB) pension programs? Is the DB concept doomed to become a mere century-long (or shorter) blip in the history of civilization? These and many other questions will be explored in this exciting and interactive session.

Much has been said during the past 20 years about the demise of the defined benefit (DB) plan. However, in many parts of the world (and in at least some socioeconomic sectors of practically the whole world), DB programs of various kinds still play a principal role in protecting individuals and the public from the perils of retirement income insecurity. This session explores the fundamental factors that distinguish classical DB plans from other traditional and non-traditional retirement income vehicles around the globe, describes some of the non-classical DB variations (and DB/DC hybrids) making their way through the public and private sectors in the past three decades and provides an overview of important research, initiatives, experiments and battles being carried out today in the corporate, academic and government arenas.

Value Ladder: Industry

Coordinator: Joshua David Bank, ASA, MAAA, EA, FCA

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Session 108: The State of Pension Plan Accounting/Disclosure

The Pension Protection Act (PPA) isn't the only set of rules shaking up the pension world. Come find out where things stand on the accounting side.

With FAS 158 adoption now essentially complete, employers must address measurement date changes, FAS 157 (What's this? Come find out!), amendments to FAS 132R and the FASB's Convergence Project with the International Accounting Standards Board.

This session will provide you with an overview of current pension accounting topics, and give insight as to what changes might be coming soon.

Value Ladder: Task/Process

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

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Session 109: Market Consistent Embedded Value—Practical Issues

While market consistent embedded value (MCEV) is still a concept at the moment, the CFO forum in Europe may soon adopt a standard of practice for preparing MCEV.

In addition to the normal financial reporting standards such as statutory, US GAAP and tax, more companies are adopting European embedded value (EEV) and market consistent embedded value (MCEV) as a part of the standard reporting package. This session will cover the rationales for performing MCEV, the conceptual differences between EEV and MCEV, as well as the practical implementation issues such as computer runtime, scenario generators, documentation, controls and the reconciliation of prior period's MCEV with the current period MCEV.

At the end of the session, you should have a better understanding of the theory behind MCEV and be better prepared for implementing the process.

Value Ladder: Task/Process

Coordinator: Vincent Y. Y. Tsang, FSA, MAAA

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Session 110: Group Life—New Products and Features

In order to prevent group life products from becoming a commodity product, it is essential that product features become part of the purchase decision. This session will present changes in product features and markets for the group life product. Those attending will gain an appreciation for the growing complexity of the group life product and pricing considerations.

Value Ladder: Task/Process

Coordinator: Scott D. Haglund, FSA, MAAA

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Session 111: Pricing Health Coverage

Appropriate pricing is an essential function for all carriers. Learn the latest techniques for pricing and developing pricing tools. This session will also cover rating engines, manual rating and systems for small group vs. large group pricing.

In this session, speakers will describe best practices and the latest techniques used to price small group, large group and ASO plans. Topics will include portfolio pricing techniques, data sources, rating tools and other components of pricing. This session will include information for both beginners and more advanced pricing actuaries.

Accurate, easy-to-use rating and underwriting models can make or break an insurer's success in the market. Efficient models can reduce underwriter training, reduce actuarial review time and provide documentation of underlying assumptions. Rating systems have different needs for small and large group pricing—presenters will discuss the most efficient way to accomplish this. They will also review reporting processes that save brokers, underwriters and actuarial staff time.

Value Ladder: Task/Process

Coordinator: Joan C. Barrett, FSA, MAAA

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Session 112: Credit Insurance and Debt Protection Products Hot Topics

Description Revised

Attendees will discuss recent events in credit insurance, including recent mortality study and application of Valuation Manual standards. Attendees will also cover recent developments in financial institution-provided debt protection and experience measurement of these programs.

Three main topics will be discussed:

1. The Credit Insurance Experience Committee of the SOA is conducting a mortality experience study. This is an update to the study conducted in 2001-2002. You will be informed of the results and a comparison to the previous study.
2. The Valuation Manual currently contains valuation standards for credit insurance. You will learn the history and current status of these standards and about the calculation and implications of these standards.
3. Attendees will discuss credit insurance valuation methods, experience analysis and asset adequacy techniques.
4. Debt protection products as provided by financial institutions have begun to mature. In this session, you'll discuss reserving methods as well as what products are being offered in different markets and what tools and techniques are being used to evaluate emerging experience.

Value Ladder: Task/Process

Coordinator: Kevin J. Pledge, FSA, FIA

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Session 113: Capital Market Innovation

Experts will share their views on the current and potential life settlement and premium financing marketplace with special focus on the implication for the insurance industry and the role actuaries can play.

In this session, speakers will share views from capital markets on the life settlement and premium financing market. Topics include:

• Current and potential life settlement and premium financing marketplace;
• Who invests, the motivation for the investment and supply and demand;
• Innovative products—longevity index, swaps, securitization;
• Strategic impact on the insurers/reinsurers; and
• Implication for the insurance industry and the role actuaries can play.

As a result of attending this session, you will gain a better understanding of the future direction of capital market involvement in the life settlement and longevity market and how actuaries can play a role in this arena.

Value Ladder: Industry

Coordinator: Randall M. Koss, FSA, MAAA

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Session 114: Using SOA e-Learning Modules for Continuing Education

Whether your FSA is 21st century or you've had it a while—find out how people in the fellowship track learn today.

Do you need to know what new fellows know? Do you need a way to earn continuing education credits? Do you want to explore other areas of practice? Learn more about the 17 e-Learning modules developed for the SOA's examination redesign or about modules being developed especially for continuing education. T hen, come learn about these interactive learning experiences that are designed to provide valuable knowledge in a variety of formats and activities. At this session, you will see how the modules work and get a brief overview of their contents. This includes the eight Fundamentals of Actuarial Practice modules that introduce the actuarial control cycle as a problem solving framework. Also included are two advanced modules for each fellowship track, and finally the Decision Making and Communication Module, designed to enhance your nontechnical skills.

As a result of attending this session, you will understand what SOA e-learning modules are and how they can be used to enhance your continuing education. In addition, you will be able to identify the contents of the 17 modules that are currently available. You will also have the opportunity to provide input for the creation of future continuing education e-Learning modules.

Value Ladder: Task/Process

Coordinator: Stuart Klugman, FSA

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Session 115: CDHP/HDHP Recent Results

What does the emerging data say about consumer-driven or high deductible health plans? What issues are being uncovered as actuaries price for and evaluate the emerging experience for these uniquely structured products?

Consumer-driven health plans (CDHP) have been available for more than seven years now, and several carriers have released studies of the emerging experience under these plans. This session will cover the latest findings of recent CDHP studies including the work of the American Academy of Actuaries CDHP Emerging Experience workgroup. This group is currently drafting a monograph that will discuss the current state of actuarial knowledge related to these plan designs including common themes and consistent findings from the various studies of CDHP plan experience.

Value Ladder: Employer/Market

Coordinator: Jennifer L. Gillespie, FSA, MAAA

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Session 116: How to Host a Business Planning Event

Learn how to bring your team together as a united force and set the proper stage for a successful business planning session.

As a manager, you need to plan to meet our company's strategic goals. You need your team members to understand and support each other in pursuit of those goals. Creating the appropriate atmosphere to bring your team together to collectively establish plans is a skill that needs to be honed. Learn from business planning experts key considerations you need to think about when orchestrating a planning session. You will be given "ice-breaker" ideas, team building techniques and be made aware of potential problems that can be avoided.

Value Ladder: Employer/Market

Coordinator: Kevin F. Leavey, FSA, MAAA

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Session 119: Pension Dumping—Who Wins and Who Loses When Pension Promises Are Broken

What exactly is "pension dumping," and how might the courts and existing bankruptcy laws permit this? Join us for a unique perspective on this controversial yet increasingly common practice.

Acclaimed writer and journalist Fran Hawthorne, author of Pension Dumping: The Reasons, the Wreckage and the Stakes for Wall Street, will be on hand to discuss the controversial yet increasingly common practice of "pension dumping"—the unloading of pension obligations during bankruptcy—by some U.S. companies. Why are laws designed to prevent the termination of pension plans ineffective? Who profits and how? Will this trend continue?

Fran Hawthorne has covered the pension industry for more than 20 years and will share her unique perspective on this timely and controversial topic.

Value Ladder: Industry

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

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Session 120: Retirement 20/20 Redux

Learn the latest on the Pension Section Council's strategic initiative: Retirement 20/20. We're in year three of the Retirement 20/20 initiative, and we've developed a measurement framework to see how the existing retirement programs worldwide stack up against the key criteria that have been identified as "must haves" in the new retirement system. We'll also give you a preview of the November 2008 Conference.

Value Ladder: Industry

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

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Session 121: Financial Reporting Issues in Insurance Securitization

What demands will you, the financial reporting actuary, face after your company securitizes a portion of its insurance liabilities?

Securitization has emerged in recent years as an alternative source of capital for a variety of purposes. Entering into such an arrangement brings new demands to the financial reporting actuary. Such demands vary with the nature and purpose of the deal. In this session, an expert panel will describe issues that typically arise in statutory, tax and GAAP reporting; in reporting to rating agencies; and in reporting to and monitoring of the counterparty.

Value Ladder: Task/Process

Coordinator: Steven F. Malerich, FSA, MAAA

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Session 122: Group Life—Underwriting and Experience Rating Considerations Workshop

How are group life products underwritten, particularly for larger customers? As with any insurance product, it can be difficult to determine the appropriate premium rate on any case. However, with experience-rated cases, the added challenge of determining the rate based on experience is present in addition to determining the manual rate for the case. In a workshop format, this session will present general approaches and considerations to price the large (and small) case risk, and will present a sample case for rating consideration.

Value Ladder: Employer/Market

Coordinator: Scott D. Haglund, FSA, MAAA

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Session 123: Technological Solutions to Pricing Health Coverage

Actuarial and underwriting functions are critical to a payer's ultimate financial success or failure. Many "technology solutions" are used to support the efforts, ranging from simple spreadsheet applications, through in-house IT built systems or externally generated rating systems.

Whether you decide to build or buy the systems supporting these functions, the following core requirements must be met:

• The appropriate blend of user access and control;
• Data quality and access;
• Technology infrastructure and support;
• Management and financial reporting; and
• Workflow integration, system ease of change and responsiveness to emerging business needs.

This session will discuss the decisions needed to achieve the core requirements for large group and small group rating by:

• Achieving the proper balance of user flexibility and system controls;
• Leveraging common platforms for actuarial modeling and underwriting rate development;
• Integrating the impact of technology on speed to market into process changes;
• Balancing the need for quality data against the reality of underlying data stores; and
• Defining the system requirements and processes for change and responsiveness.

Value Ladder: Task/Process

Coordinators: Susan Elizabeth Pantely, FSA, MAAA

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Session 124: LTC Insurance Section-Sponsored Research Study Results

This session will provide you with an update of the findings of three research projects cosponsored by the LTCI Section of the SOA and the ILTCI Conference Board.

A Study on Transition Rates Between Claim Stages—This study analyzes experience transition rates between claim settings, primarily those between facilities and home care. The study also examines transitions between other care settings, such as assisted living facilities, to the extent that credible data is available.

Cognitive and Functional Disability Trends in Assisted Living Facility Residents—The purpose of this research is to better understand the functional and cognitive trends among assisted living facility residents. Specific questions to be addressed include: What are the ADL, cognitive and medical profiles of assisted living residents and how has this changed over time? How does the ADL and cognitive profile of assisted living residents differ from service users in nursing home settings and in home health care settings? And, What are the most prevalent dependencies among individuals in assisted living?

A Study on Underwriting Selection Wear-Off—This study will develop an ultimate table of morbidity incidence rates and claim costs, develop related select-and-ultimate factors by issue age, gender and marital status and perform various analyses to test the appropriateness, significance and variability of the results. The study also considers the impact of underwriting requirements, marital status, underwriting classification, product design, distribution and reviews how the select period has changed over time.

Value Ladder: Employer/Market

Coordinator: Amy Pahl, FSA, MAAA

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Session 125: Getting Off the Ground

This session provides meaningful, personal insights to help you successfully organize your business for long-term success, not just for a startup, but including long-term scalability.

For many starting a new business venture the tendency is to focus on the short-term considerations and inadequately consider the consequences of success. This session will provide practical insights to do it right the first time and avoid many of the most common mistakes. Speakers will present practical legal, business planning and financial (buy-in and transition of power) insights.

Value Ladder: Task/Process

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

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Session 126: E-Signatures

E-signatures enable a legally binding, compliant, paperless business process for straight-through processing (STP) of insurance products. Whether your company is using e-signatures now or planning to introduce them soon, this session will give you an overview and address the questions you should be considering.

Topics covered include:

• E-signatures;
• The authority for using e-signatures;
• Valid e-signatures;
• A discussion of the required software;
• The areas where e-signatures can and should be used;
• A discussion of any impact of e-signatures at time of claim;
• What the company experience has been in using e-signatures in claim reviews; and
• Cost implications when e-signatures are used.

Value Ladder: Task/Process

Coordinator: Kevin J. Pledge, FSA, FIA

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Session 127: Replicating Portfolios

Learn how replicating portfolios are being used to approximate the value of liabilities. Insurance companies are turning to the use of replicating portfolios to generate the market value of their liabilities to gain efficiency in the stochastic modeling process. This session will discuss the current optimization methods being used to determine a universe of assets that replicate the cash flows for insurance liabilities. The presenters will discuss the benefits and challenges of using replicating portfolios to support their economic capital framework.

Value Ladder: Employer/Market

Coordinator: Matthew P. Clark, FSA, MAAA

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Session 128: Indexed Products

Indexed life and annuity products have experienced rapid growth in recent years and remain as attractive product sets today. This session will explore recent trends with respect to sales and product features along with views of future product development directions and associated pricing impacts. In addition the session will summarize recent regulatory topics, financial reporting developments and common issues and challenges that companies are facing with respect to indexed products.

Value Ladder: Employer/Market

Coordinator: Andy Ferris, FSA, MAAA

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Session 129: Are Your Health Trends Fact or Fiction?

Accurate trend analytics and stable forecasting are essential to the financial management of the health insurance business. Various versions may be used within a health care organization. Some may include benefit buy-downs, for example; others might not.

In this session, you will learn the tools of the trade to report and manage trends for the various health care payers. Understand the forces that influence short-term future trends, how to incorporate them into trend calculations and ways to forecast more accurately. Learn the difference between allowed trend and paid trend and why they differ. Know how trend numbers are being used across the organization to increase the credibility of your work.

Value Ladder: Task/Process

Coordinator: Greta Redmond, FSA, MAAA

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Session 130: The Actuarial Standards Board and ASOPs

A presentation both explaining the current composition and the workings of the Actuarial Standards Board, and discussing possible future directions will be given. An overview will be given of the current ASOPs, the template they follow and the process by which they are developed. A discussion will follow about the ASOPs currently being written or revised. Finally, there will be a forward-looking discussion about critical issues and challenges that are currently facing the board and how actuarial standards may evolve in the future. The session will end with a question and answer period during which you are encouraged to give your impressions of the ASOPs and the process by which they are developed.

Value Ladder: Professionalism

Coordinator: Stephen G. Kellison, FSA, MAAA, EA

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