Publications

Papers

Translations of certain IAA papers have been made by local member associations or members. The IAA has neither reviewed nor endorsed them. However, we are providing them on our website as a service to members.

  Assessing Risk and Proportionate Actuarial Services in Inclusive Insurance Markets — An Educational Paper and Toolkit - November 2018 - Around the world, people from a low-income background are vulnerable to a variety of risks due to their working and personal conditions. They often face the risk of falling into hardship due to the lack of social safety nets. If structured appropriately, insurance can play an important role in helping low-income people manage such risks. This is the context of inclusive insurance, which encompasses microinsurance. The goal of inclusive insurance is to provide financial protection against risks in a way that is affordable, sustainable, responsible and accessible by all types of customers, particularly customers from a low-income background.

This educational paper and toolkit fulfil the recommendation in the IAA Issues Paper “Addressing the Gap in Actuarial Services in Inclusive Insurance Markets”, by addressing three key questions regarding the application of proportionate actuarial services in inclusive insurance:

  • How does one identify the key insurance risks in terms of a product or a provider?
  • What actuarial or other advice or services are needed to manage these risks?
  • What level of actuarial skills, if any, is needed to deliver the actuarial advice or service?

This paper is an outcome of a joint project between the IAA and the International Association of Insurance Supervisors (IAIS) to develop frameworks to support the proportionate prudential regulation and application of proportionate actuarial services in inclusive insurance markets. This paper should be read in conjunction with the expected IAIS material.

Toolkit Contents: Tool / Health & Life Product / Mobile Hospital Cash Product / Social Health Product

  Decarbonization: A Briefing for Actuaries - September 2018 - This paper provides an introduction to the topic of decarbonization for actuaries around the world. Aspects covered include: the main types and sources of greenhouse gas emissions; relevant international agreements; commitments made; the policies adopted; likely future developments; and, observations on potential actuarial implications. While decarbonization will increasingly affect every economy and will transform how and what goods are produced and services are provided, the timing and progress of change is highly uncertain.
  Defined Benefit Pension Plan Funding and the Role of Actuaries - May 2018 - This monograph considers the funding of defined benefit (DB) pension plans and specifically the prefunding of DB pension plans rather than pay-as-you-go systems. It looks at some of the key questions that arise when considering how pension plans are funded and the role of actuaries in helping to answer these questions. It looks too at some of the key drivers for different approaches to pension plan funding. It uses the term pension plan to refer to the legal entity or arrangement that is used to deliver the pension benefit. This monograph is educational rather than representing any form of guidance. Any proposals made are subject to the relevant actuary’s judgement in the circumstances of a particular situation.
Measuring and Reporting Actuarial Obligations of Social Security Systems - March 2018 - Many accounting and statistical agencies and institutions have already issued or are considering issuing guidelines on measuring and reporting actuarial obligations of social security systems. This is a principles-based paper presenting the Social Security Committee's perspectives on measurement and reporting of actuarial obligations of SSRSs and emphasizes the importance of relevant disclosures.

Climate Change and Mortality - This discussion paper was prepared by the Resources and Environment Working Group of the IAA - November 2017 - Climate change will have significant and wide-ranging effects around the world. One important impact is on the mortality of the population, which is the focus of this paper.

Webinar held on 29 November 2017  Presentation 

The Impact of Personalised Medicine and Genomics on the Insurance Industry - April 2017 - Personalised Medicine is attracting serious attention at many levels internationally. This paper developed by the Health Committee of the IAA discusses personalised medicine, the future of genomics, current challenges, impact of genomics on the insurance industry and recommendations for actuaries.
Long-Term Care: An Actuarial Perspective on Societal and Personal Challenges - April 2017 - Long-Term Care (LTC) is an important and complex issue that everyone should be concerned with, either at the societal, business or personal level. This paper provides information concerning some of the key issues associated with LTC, recognising that there are significant differences throughout the world in how LTC is delivered and financed.

Determination of Retirement and Eligibility Ages: Actuarial, Social and Economic Impacts - March 2016 - This Paper has been produced by the Population Issues Working Group of the Scientific Committee of the IAA.We extend our sincere thanks to the members of the drafting team: Morteza Aalabaf-Sabaghi, Yair Babad, Assia Billig, Sam Gutterman and Martin Stevenson

Joint Synthesis Paper by IOPS and IAA: The role of actuarial calculations and reviews in pension supervision. By Sherika L.L. Ellis, Esko Kivisaari and Dariusz Stanko - September 2015

Joint Background Paper by IOPS and IAA: The role of actuarial calculations and reviews in pension supervision. By Sherika L.L. Ellis, Esko Kivisaari and Dariusz Stanko - September 2015
Actuarial Aspects of ERM for Insurance Companies - The purpose of this paper is to provide assistance to actuaries or other practitioners in relation to Enterprise Risk Management (ERM). The objective is to assist practitioners, and to help to achieve greater consistency in relation to knowledge and awareness of various topics. This paper has been produced by the Enterprise and Financial Risk Committee of the IAA.

IAA Risk Book - Governance, Management and Regulation of Insurance Operations - This is a collection of papers that has been produced and approved by the Insurance Regulation Committee of the International Actuarial Association (IAA) - Published 30 September 2015

Webinar  Presentation 

Deriving Value from ORSA - Board Perspective - An Executive Board has a significant role to play in overseeing management's assessments of risk and solvency and in challenging ORSA results as they are communicated by management. The purpose of this paper is to provide members of the Board insight into the value of the ORSA process, regardless of the specific implementation and requirements for ORSA in a given regulatory environment and to establish Board expectations for the information that senior management should routinely communicate to them.

Analysis on the Risk of Ebola — This is an analysis on an evaluation of the mortality and morbidity risk of Ebola to life and health insurance companies1 . The actuarial profession has played an active role in developing models and advising on the impact of epidemics on mortality and morbidity risks, particularly in the context of the HIV/AIDS epidemic in the 1980s and beyond. Whilst this does not go into the same level of detail or sophistication, the aim of this high-level analysis is to assist actuaries working for or consulting with life or health insurance companies on evaluating the risk of an Ebola epidemic to their companies or clients.

Addressing the Gap in Actuarial Services in Inclusive Insurance Markets —This paper outlines the current context and challenges in providing qualified actuarial resources in microinsurance markets and proposes a number of suggestions intended to address these challenges. The paper also explores avenues for further development and collaboration between the IAA and IAIS in this area. The paper identifies a number of key issues in inclusive insurance markets, such as:

  • A need for suitably qualified or experienced professionals;
  • Limited supply of actuarial capacity in microinsurance markets;
  • A lack of understanding of the contribution that actuaries can make to microinsurance programmes; and
  • The importance of balancing supply and demand for actuarial services.

Intra-Group Reinsurance Transactions — This paper is intended to help readers understand the rationale behind Intra Group Reinsurance Transactions including some of the issues faced in their execution. The paper describes the role of Intra-Group Reinsurance Transactions in managing and steering a (re)insurance group. Intra-Group Reinsurance Transactions, consistent with any reinsurance transactions between two separate legal entities, impact the level and emergence of profit within the two entities as well as the strength of the respective two balance sheets. (Japanese)

Stress Testing and Scenario Analysis — This paper provides an actuarial perspective on scenario analysis and stress testing. As part of the analysis of risks to the financial condition of a firm, these methods are essential tools for effective risk management and macro prudential oversight. They can enhance the understanding by its stakeholders of the financial vulnerability of the firm. (Japanese).

Actuarial Viewpoints on and Roles in Systemic Risk Regulation in Insurance Markets — The purpose of this paper is to provide actuaries with the background to address conditions and tools to identify, assess, monitor and mitigate systemic risks. The scope of this paper is limited to global insurance market operations and risks of systemic events in those markets. From the global context, a macro-prudential approach towards the regulation for systemic risk is assumed. The role of actuaries in assisting systemic risk regulators with respect to insurance markets is identified and discussed in a global market context. (Japanese)

Stochastic Projections of the Financial Experience of Social Security Programs: Issues, Limitations and Alternatives — For well over a century, actuaries have projected the financial experience of social security programs around the world. Policymakers – and actuaries themselves – have debated various aspects of these financial projections, such as: (a) the key economic and demographic assumptions, including mortality improvement and fertility trends, on which the projections are based, (b) the duration of the projections, which have ranged from just a few years to 75 or more years, and (c) the treatment of uncertainty by deterministic and stochastic methods. This paper focuses on this last aspect, highlighting key issues related to the application of stochastic models, although the paper also touches on the first two aspects due to their interrelated nature.

Measurement of Liabilities for Insurance Contracts: Current Estimates and Risk Margins
Measurement of Liabilities for Insurance Contracts: Current Estimates and Risk Margins — The ad hoc Risk Margin Working Group (RMWG) of the International Actuarial Association (IAA) has conducted research into the measurement of liabilities for insurance contracts that has resulted in this paper. The issues addressed are those that will help determine future practice for measuring liabilities for insurance contracts for both regulatory and general purpose financial reporting. It focuses on current estimates and risk margins, which the RMWG believes to be an appropriate basis for the measurement of liabilities for insurance contracts. During the course of this research the RMWG has sought and incorporated input from various stakeholders in the measurement of these liabilities. (Online Order Form)

Blue Book: A Global Framework for Insurer Solvency Assessment — This paper has been prepared for the International Association of Insurance Supervisors (IAIS) to explore the elements needed for an international capital standard for insurers and to provide a “best practices” approach available to all supervisors. It deals with methods the supervisor might use to assess the current financial position as well as to understand the range of possible future financial positions of insurers. Its primary focus is on capital requirements for insurers.(Online Order Form)

Note on Enterprise Risk Management for Pensions  This paper provides an important summary of the pension industry's perspective on Enterprise Risk Management for capital and solvency purposes in the insurance industry, noting that:

  • in pensions the sponsoring company is generally not an insurance company and therefore pension issues should, in the sponsoring employer, be dealt with in the general framework of ERM, not just in a framework adapted to insurers; and
  • while pensions have much in common with insurance contracts, there are quite a few differences, meaning that the framework adapted to insurers is not directly applicable to pension funds.

Note on the Use of Internal Models for Risk and Capital Management Purposes by Insurers  This note provides educational material for those responsible for constructing, using and approving the use of models to assess and manage risk and capital within insurance enterprises (insurers). This material is also useful to those who rely upon the information derived from models, as an aid to understanding the derivation, uses and limitations of this information. Internal models are primarily relied upon by boards of directors and senior management for strategic planning, regular monitoring of risk and managing an insurer’s corporate capital. Internal models are also coming into use for determining regulatory required capital, usually subject to supervisory approval based upon satisfaction of specific conditions required by the supervisor.