Concurrent Sessions

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Agenda Day One

Wednesday, April 18

5:00 - 7:00 p.m.

Registration

Agenda Day Two

Thursday, April 19

7:00 a.m. - 5:00 p.m.

Registration

7:30 - 8:15 a.m.

A hot breakfast buffet is available for all meeting attendees.

7:30 - 8:15 a.m.


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Keynote Speaker: James Lam

James Lam is the president of James Lam & Associates and a director of E*TRADE Financial, where he chairs the risk oversight committee. Previously he served as president of ERisk, partner of Oliver Wyman, chief risk officer of Fidelity Investments, and chief risk officer of GE Capital Markets Services. Lam was named to the NACD Directorship 100, Directors & Boards "Directors to Watch," Treasury & Risk "100 Most Influential People in Finance" three times, and GARP inaugural "Risk Manager of the Year." He is a best-selling author of three ERM books published by Wiley. Lam is certified by the Software Engineering Institute of Carnegie Mellon in Cybersecurity Oversight.


Presenter(s) James Lam

Moderator(s): S. Michael McLaughlin, FSA, CERA, FIA, MAAA

Coordinator:S. Michael McLaughlin, FSA, CERA, FIA, MAAA

9:30 - 10:45 a.m.


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Presenter(s) Thomas C. Wilson James Lam

Moderator(s): Mark W. Griffin, FCA, CERA

Insurance companies looking to unlock value are finding it increasingly challenging to navigate the headwinds of low organic growth, low interest rates impacting investment income and new business profitability, potential financial market volatility given peak asset valuations and potential disruption to business models by FinTech startups. Adding greater complexity to the challenge is the inherent volatility and new management signals induced by risk-based capital and accounting regimes such as Solvency II, the future IAIS ICS and IFRS 17 and rising shareholder expectations with regards to capital management. The best course optimizes profitable growth at lower capital intensity, delivering simultaneously earnings growth, higher, sustainable RoE and cash repatriation to shareholders.

This session focuses on managing corporate value under a risk-based capital regime. The session begins by presenting a transparent framework for measuring and managing value and then continues by outlining the primary levers for creating shareholder value. The session supplements the foundations laid out in the author's book* by providing concrete and practical case examples.


Credit 1.50 CPD

Experience Level: Advanced

Coordinator: Mark W. Griffin, FSA, CERA

9:30 - 10:45 a.m.


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Presenter(s) Dwayne Allen Husbands, FSA, MAAA; Youyou Tao, FSA, CERA

Moderator(s): Eric L. Clapprood, FSA, CERA

Forward-looking and stress testing/what-if projections of cash flows, financial statements and capital requirements are critical inputs to a range of business purposes including forecasting, risk management, liquidity management and strategic decision-making. Most noticeably, the risk management landscape has continued to evolve for insurers over recent years and the role of stress testing within risk management frameworks has become more prominent. Further, forward-looking projections have historically been inefficient and performed in silos, making it difficult to scale the process as CFOs and CROs ask for more. This session will discuss how to effectively embed and integrate stress testing in a risk management framework and challenges related to implementation of forward-looking projection processes. This includes a deep dive discussion of:

  • How to utilize stress testing to inform your risk appetite, calibrate risk limits and monitor a risk profile;
  • How to overcome challenges in forward-looking projection using a combination of top down and bottom up technique; and
  • How to consider risk reporting and analytics to get the most out of stress testing results and better inform management decisions.

Credit 1.50 CPD

Experience Level: All

Coordinator: Dariush A. Akhtari, FSA, MAAA, FCIA

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Presenter(s) Randi Ellen Woods Marsh, FSA, CERA, MAAA; David K. Sandberg, FSA, CERA, MAAA

Moderator(s): David K. Sandberg, FSA, CERA, MAAA

Operational risk is the risk of losses resulting from inadequate or failed internal processes, people and systems, or from external events. Given the heterogeneity and scarcity of the data, modelling operational risk within an insurance company is a challenging task. In this context, an alternative is to the lack of historical data is to use the Scenario-Based Approach (SBA) which focuses on scenario analyses that are fed with expert opinion. The quantification of those risk scenarios on a standalone basis leads to the study of their dependence in order to aggregate those operational risks and finally determine the annual aggregate loss distribution to compute the VaR at 99.5%. The objective is to scrutinize the steps of the quantification process in a SBA internal model in order to discuss the robustness of the model.


Credit 1.50 CPD

Experience Level: Beginner to Intermediate

Coordinator: David K. Sandberg, FSA, CERA, MAAA

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Presenter(s) S. Douglas Caldwell, FSA, CERA, MAAA; Elisabetta Russo, MAAA; Chad R. Runchey, FSA, MAAA

Moderator(s): Michael McComis

Attendees will be able to compare their own company's ORSA with practices at peers, identify their shortcomings and how to prioritize future ORSA development. The session will also provide an understanding of NAIC and state Department of Insurance priorities in response to submitted ORSA reports.


Credit 1.50 CPD

Experience Level: All

Coordinator: David K. Sandberg, FSA, CERA, MAAA

10:45 - 11:00 a.m.

A refreshment break is available for all meeting attendees.

11:00 a.m. - 12:15 p.m.


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Presenter(s) James Russell Collingwood, ASA, MAAA; David Paul, FCAS, MAAA; David K. Sandberg, FSA, CERA, MAAA

Moderator(s): James Russell Collingwood, ASA, MAAA

Recent financial reporting (e.g., IFRS, FASB, PBR) and state, federal and international regulatory developments (e.g., FSOC, US Treasury, NAIC, IAIS) have made it timely for insurers to consider the future trajectory of accounting, regulatory and capital developments over the next three to five years. It will be important for risk managers to consider what questions they should be asking and what actions they should be taking to modify their risk and capital profiles and activities. Answers to these questions will be critical in meeting the challenges and opportunities presented by the changing accounting and regulatory landscapes and different focuses of each accounting standards and regulatory body. Questions to be addressed include:

  • How do evolving requirements around IFRS, FASB and PBR guidance differ?
  • How do evolving requirements from state, federal and international regulatory organizations differ?
  • How will these developments impact the accounting, risk and capital profiles of U.S.-based insurers with international reach?
  • What business and strategic considerations should insurers take on board in response to these developments?
  • What questions should risk managers be asking and considering as their organization address these developments?

At the conclusion of this session, attendees will be able to describe the differences in emerging accounting, state, federal and international regulations, identify the impact these developments could have on their respective organizations and understand potential approaches companies are taking to address these emerging developments. Additionally, attendees should be better able to differentiate between emerging guidance from each of these regulatory bodies and understand how preparations for each may need to differ in the coming years.


Credit 1.50 CPD

Experience Level: All

Coordinator: David K. Sandberg, FSA, CERA, MAAA

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Presenter(s) Ross Albert; Damon Levine

Moderator(s): TBD

Data breaches come with such alarming frequency that we sometimes struggle to remember the details from years past, even when they came with long lasting impacts to the affected organization. It is safe to say, however, that the company does not forget, and will require focused attention by management and the board. This focus also extends beyond data breach and there is a clear expectation for robust management of cyber risk exposures across the enterprise.

More and more, industry bodies and leading cyber risk practitioners are realizing the value of an enterprise approach to management of these risks.

Damon Levine's presentation will provide actionable advice and battle-tested techniques that allow for cyber risk management to take a more holistic view, in the manner of ERM, to leverage organizational intelligence and drive both security and performance.

Ross Albert will offer attendees a unique opportunity to examine the threat of data from the view of the hacker in his presentation, which includes simulation of malware threats based on actual incidents. The audience will experience a series of cyber security incidents leading up to and including a data breach while interacting directly with the hacker. The presentation will also include a discussion of risk management techniques that may be able to help. Focus will be placed on demonstrations of social engineering and ransomware attacks.


Credit 1.50 CPD

Experience Level: Beginner to Intermediate


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Presenter(s) Winston Tuner Hall, FSA, MAAA; Michael Minnes

Moderator(s): Tyson Robert Mohr, FSA, MAAA

The session will identify processes, tools and policies that each line of defense should have in place to implement a model validation program. Presenters will discuss how to encourage collaboration between the three lines of defense, efficiently leverage expertise of second and third lines of defense, and use the model validation program to affect culture change. The session will be relevant to a variety of modeling context, including life, P&C, investments and reinsurance.


Credit 1.50 CPD

Experience Level: All

Coordinator: Tyson Robert Mohr, FSA, MAAA

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Presenter(s) Sim Segal, FSA, CERA; Philip Sherrill

Moderator(s): Kathryn Hyland, FSA, CERA, FCIA, MAAA

Value-based ERM introduced the concept that risk be defined as events that result in deviation of strategic plan baseline expectations. With this approach, ERM can be applied to any organization that can clearly state its strategic plan. How can this be achieved during a period of tumultuous upheavals and uncertainty in the legislative landscape, such as what was experienced in the U.S. health insurance sector in 2017? Attendees of this session will find out. In this session, we provide an overview of the volatile U.S. health insurance sector in 2017 and then discuss the resulting challenges for an ERM implementation launched during this period. We will then outline how the ERM approach adopted and the information generated from enhanced risk quantification and modeling helped clarify executives' assumptions, inform strategic choices, and increase value creation via better risk-reward decisions. At the conclusion of the presentation, we will discuss how the insurer's risk culture evolved with a unified way of looking at risk and through the kinds of internal dialogue and connections created as a result of ERM adoption.


Credit 1.50 CPD

12:30 - 1:45 p.m.



Keynote Speaker: Chandu Patel

Moderator(s): S. Michael McLaughlin, FSA, CERA, FIA, MAAA

As in any endeavor, it is essential to carefully study the anatomy of failure of risk management in order to succeed. This poolside chat will cover the topic of property casualty insurance reserves and how failures in risk management protocols can lead to large scale impairment. It will also address the proper risk management protocols that need to be in place in order to achieve long term success.

The luncheon is included in your registration fee. You may register your guest(s) for the luncheon by including $75 per person with your registration fee. Admission tickets are available for purchase at the meeting as space permits. Refunds will not be given.

2:00 - 3:15 p.m.


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Presenter(s): Jessica Ou Dang, FSA, FCIA; Sam Gutterman, FSA, CERA, FCAS, FCIA, HONFIA, MAAA; R. Thomas Herget, FSA, CERA, MAAA; Max J. Rudolph, FSA, CERA, MAAA

Moderator(s): David K. Sandberg, FSA, CERA, MAAA

Numerous great reports and studies are available to the risk practitioner. This session will raise awareness on a few recent reports that should help practitioners in their daily work.


Credit 1.50 CPD

Experience Level: All

Coordinator: David Schraub, FSA, CERA, MAAA

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Presenter(s) Awa Kone, FSA, CERA, MAAA; Jane Wang

Moderator(s): Anthony Dardis, FSA, CERA, FIA, MAAA

As the insurance industry experiences digital transformation, several leading insurers have taken the lead in collaborating with InsurTech companies to achieve their digital objectives. As more companies explore these partnerships, it is imperative to realize the challenges as well as the opportunities and understand how to manage any potential enterprise risks from these partnerships. This session will discuss the following:

  • What is the strategic reasoning behind having a venture arm to back external organizations and most notably start-ups?
  • What are some ways in which these collaborations have been structured? What are the strategic visions behind these partnerships?
  • What are some learnings, challenges and pitfalls to avoid on either side?

Credit 1.50 CPD

Experience Level: All

Coordinator: S. Michael McLaughlin, FSA, CERA, FIA, MAAA

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Presenter(s) S. Douglas Caldwell, FSA, CERA, MAAA; Daniel B. Finn, FCAS

Moderator(s): Mario E. DiCaro, MAAA, FCAS

Historically, most companies have most, if not all, of their operations in a single economy. This has allowed Economic Capital Models (ECMs) to be built within that single economy. Increasingly, though, insurance companies are expanding their international operations either organically or through acquisition. As these foreign exposures grow, ECMs need to be expanded to consider the additional risks the company faces. This session will focus on how modelers should approach this challenge. What are the key risks that need to be considered? Are there relationships between these variables that need to be addressed, as well? What are some of the additional strategic considerations that arise (e.g., hedging vs. not FX risk)? In addition to hearing about the modeling challenges, attendees will also hear from a company that recently faced this challenge and some of the lessons they learned from the process.


Credit 1.50 CPD

Experience Level: Intermediate

Coordinator: Jed Nathaniel Isaman, MAAA, FCAS

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Presenter(s) Tobias Gummersbach; Hal Warren Pedersen, ASAA

Moderator(s): TBD

This session covers how ERM and Investments impact one other. The first part of the session will explore how capital charges like the BCAR rating model update shape investment. The second part will provide insight on how the investments function uses the ERM program.


Credit 1.50 CPD

Experience Level: Intermediate

Coordinator: Eric Michel Fournier, ASA, MAAA

3:15 - 3:30 p.m.

A refreshment break is available for all meeting attendees.

3:30 - 4:45 p.m.


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Presenter(s): Abhishek Breja; Damon Levine

Moderator(s): Yangyan Hu, FSA, EA

This session will help attendees understand in what areas ERM functions (at insurers) are likely to see a benefit from the use of artificial intelligence (AI). We will cover applications to underwriting, operational risks, risk prioritization/hypothesis testing, claims management, fraud detection, third party risk management, compliance, data analysis and data-driven decisions.

A key benefit will be the understanding of hype versus reality in the use of AI, and how resources and investments might be reasonably allocated.

Examples of potential methods, themes and algorithms will be presented. Using the above concepts along with case studies of actual implementation, the attendee will walk away with a deeper understanding of what aspects of ERM are most likely to be revolutionized by AI, where a "human practitioner" will likely remain essential, and what areas represent the best opportunities for R&D today.


Credit 1.50 CPD

Experience Level: All

Coordinator: Yangyan Hu, FSA, EA

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Presenter(s) Lisa Gattel Chanzit, FCAS, MAAA; Brian Joseph O'Neill, FSA, CERA, MAAA

Moderator(s): Mario E. DiCaro, MAAA, FCAS

The reinsurance market both in the US and abroad is in a constant state of change. Whether you are focused on rating agency capital, earnings volatility, regulatory capital, your organization's view of economic capital, or managing distribution channels, optimizing your reinsurance strategy is an important part of helping your organization accomplish its goals. In this session, we will review the different ways that insurance organizations define and view significant risks. A demonstration will also include ways that reinsurance can help organizations identify, measure, manage, and mitigate that significant risk in both the current environment and in the prospective future environment.


Credit 1.50 CPD

Experience Level: Intermediate

Coordinator: Mario E. Di Caro, FCAS, MAAA

Presenter(s) Aymeric Kalife; Ronald Sleiman, FSA, MAAA; Phil Weeber

Moderator(s): Eric Michel Fournier, ASA, MAAA

This sessions will overview of ERM consideration for hedging programs: processes, what monitoring is needed, roles and responsibilities.


Credit 1.50 CPD

Experience Level: Intermediate

Coordinator: Eric Michel Fournier, ASA, MAAA

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Presenter(s) Sim Segal, FSA, CERA; Philip Sherrill

Moderator(s): Sim Segal, FSA, CERA

In this session, we discuss the ERM obstacle most commonly-reported: A lack of buy-in by key stakeholders. We will present common patterns and the reasons behind the resistance from key internal and external stakeholders. We then discuss examples of tools and techniques that have been used to successfully build buy-in throughout various stages of the ERM process cycle, including risk identification, risk quantification, risk decision making, risk messaging, ERM framework, and risk governance. We then discuss a case study of how such techniques helped advance the ERM program while building key allies throughout the organization, advancing the risk culture.

At the conclusion of this session, attendees will:
  • Understand common patterns and reasons behind the lack of buy-in for some ERM programs
  • Learn tools and techniques for building buy-in throughout various stages of the ERM process
  • Learn a case study of how these tools were successfully applied to build buy-in and advance risk culture

Credit 1.50 CPD

Experience Level: Intermediate

Coordinator: Beth Haney

5:00 - 6:30 p.m.


Don't miss this annual networking opportunity. Relax, mingle and build professional connections and new friendships. Share your professional experiences with your peers and meet potential clients at this fun and useful event. Meeting badges are required for attendees and registered guests.

1:45 - 3:00 p.m.


Moderator(s): Moderator(s): Lisa Gattel Chanzit, FCAS, MAAA; Mark W. Griffin, FSA, CERA

This session is an open forum approach in which small groups of participants can discuss key risk topics in an off-the-record, informal setting. Please come to the session with any topical areas for which you would appreciate the perspective of your peers. Any and all topics and input are welcome! Facilitators are available to open up the dialogue if necessary. Examples of areas that may be covered include strategic risk management and how to use ERM metrics to improve decision making; approaches to quantifying operational risk; approaches for internal capital models; creative ways to engage business stakeholders; credit risk management including tools and ownership across lines of defense; and model validation and documentation. This session was introduced to the ERM Symposium last year to great reviews. Come and hear the common challenges and potential solutions from others in the industry!


Credit 1.50 CPD

Experience Level: All

Coordinator: Mark W. Griffin, FSA, CERA

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Presenter(s) Alexander Sand; Nick Lasenko

Moderator(s): David Schraub, FSA, CERA, MAAA

Cybersecurity continues to represent one of the most significant risks facing companies across sectors, with news of the most recent cybersecurity catastrophe hitting the headlines on a seemingly daily basis. As a result, 2017 saw a sea change in how regulators are approaching cybersecurity risk, moving to define requirements and expectations for how regulated entities prospectively manage cybersecurity risk, not just how they respond to cybersecurity incidents. These new regulatory approaches can serve as a bellwether to help identify key sources of cybersecurity risk and how companies are managing them. During this session, panelists will take a legal and technological lens to the New York Department of Financial Services' influential cybersecurity regulation to identify and frame key cybersecurity risk issues and provide updates from the field on how companies are tackling these challenging issues. Issues addressed during this session will include incident response, access management, patch management, vendor management, and board engagement.


Credit 1.50 CPD

Experience Level: Advanced

Coordinator: Mario E. Di Caro, FCAS, MAAA David K. Sandberg, FSA, CERA, MAAA

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Presenter(s) Mario E. DiCaro, FCAS, MAAA; Christopher M. Suchar, MAAA, FCAS

Moderator(s): Berna Beekman, FCAS, MAAA

Health insurers in the United States are subject to NAIC ORSA reporting requirements and rating agency scrutiny like life and property/casualty insurers. However, there are important differences in how the principles of ERM and economic capital modeling are applied to health insurance enterprises. The relative importance of different risk factors can be quite different and the sources of information available to quantify risk can also be quite different.

Most importantly, many managers in health insurance enterprises are not as accustomed to analysis of the "riskiness" of their business, and so the ERM process can require a greater effort to educate the management audience and get their buy-in.

This session will illustrate an ERM approach as applied in a health insurance context. The fundamental framework can be applied to any insurer but the distinctive characteristics of health insurance will be highlighted.


Credit 1.50 CPD

Experience Level: Beginner to Intermediate

Coordinator: David Yonathan Shleifer, ACAS

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Presenter(s) Mark E. Alberts, FSA, MAAA; David N. Ingram, FSA, CERA, MAAA

Moderator(s): Max J. Rudolph, FSA, CERA, MAAA

Stress/scenario testing is used by most insurers filing an ORSA, for cash flow testing and in best practice strategic planning. What levels of adversity are appropriate and over what time horizon? This session will tackle practical considerations across long time horizon stress/scenario testing for life and P&C companies using the presenters' experience as well as recent research sponsored by actuarial organizations (modern deterministic scenarios, low growth scenario, transition to a high Interest rate environment). Participants will come away with an appreciation of why stress/scenario tests are considered to be the Swiss Army knife of ERM.


Experience Level: Intermediate

Coordinator: Dariush A. Akhtari, FSA, FCIA, MAAA