Risks – [BonkNote]

Credit Risk 1994 – SOA – Credit Risk Study, Society of Actuaries – 20p

Pricing Risk Take the pricing risk. Mutuals, for most of the past 130 years, have favored gross premiums high enough to minimize the risk that any block of business would not be self-supporting. Joseph B. MacLean, addressed this matter in a 1945 edition of his book, Life Insurance. He wrote that participating premiums should be…

Tail Risk 2015 – SOA – Report on Extreme Events for Insurers: Correlation, Models and Mitigations, Society of Actuaries – 86p

Banks – Risks Response to questions from the Honorable Sherrod Brown, by Martin .J. Gruenberg, Acting Chairman Federal Deposit Insurance Corporation During the June 6111 hearing, Mr. Gruenberg agreed that “historically, including to the present day, the biggest risk of banking is the lending activity that is inherent to the banking process.” (p148) 2014 -…

Core Business By contrast, the core business of an insurance company is transferring and pooling risk.258 If premiums are prepaid, this does not necessarily entail any short-term borrowing. That means that the risk that an insurance company will have to sell large quantities of assets is smaller. This is not to say that insurance companies…

Search For Yield 2013 – FRB – Are the Fed’s low interest rate policies pushing investors toward risk? – 4p 81. AIG also chased higher yields by investing heavily in bonds of lengthy maturity As a consequence, AIG grossly mismatched the maturity dates of the collateral investments and the underlying securities loans, which rarely had…

Orderly Liquidation The complexities involved in resolving MetLife could aggravate the threat posed to U.S. financial stability by the company’s material financial distress. Case 1:15-cv-00045-RMC Document 85-2 Filed 09/30/15 Page 15 of 222 govinfo.gov/content/pkg/FR-2011-07-15/pdf/2011-17397.pdf govinfo.gov/content/pkg/FR-2016-10-31/pdf/2016-25329.pdf

ERM – Enterprise Risk Management 2010 – SOA – Did Enterprise Risk Management Really Work? – The Case of Lincoln Financial Corporation, Scott Engle, Presented at 2010 Enterprise Risk Management Symposium, Society of Actuaries – 18p 2013 – SOA – ERM-ILA Model Solutions, Fall 2013, Society of Acuaries – 38p Learning Objectives: 2. The candidate will…

Root Cause FSB As we began researching this problem, two questions became central. What criteria should we use to evaluate suggested changes and alternatives? What is the root cause of current problems, and why have previous corrective efforts been so unsuccessful? As research continued, at some point we started to focus on the uses of life…

Tipping Point Dear Editor: Life Insurance Sales Illustrations – A Call to Action We have reached the stage where a life insurance sales illustration is hardly worth the paper it is printed on. Yet thousands of agents are confidently presenting these illustrations to frequently unsuspecting clients. I have yet to discuss this issue with anyone…