March 2011 Workshops

EVENT: March 2011 Workshops

DATE: Wednesday March 23, 2011
11:00-12:30 Pre-workshops Webinar
12:50  Registration begins
  1:45  Workshop sessions begin (see attached schedule)
  5:15  Bar opens (cocktails, beer, wine, soda pop)
  5:45  Dinner

PLACE: Holiday Inn Chicago Mart Plaza, 14th Floor Conference Center
350 W Mart Center Dr, Chicago 60654

COST: $100 with dinner, $85 without dinner
(Reduced rate for retirees, unemployed, full time students: $55 with dinner, $40 without dinner)

Workshops cover a variety of hot topics in each of the time slots. 

Use this opportunity to fulfill some of your continuing professional development requirements.  You can earn more than 3 hours toward your annual AAA and SoA CPD requirements while you meet and network with other local actuaries face-to-face.

We welcome and encourage non-actuaries to attend our workshops because information covered is relevant to a wide range of work within the insurance and consulting industries.  Please share this announcement with others who may be interested. 

Please register online.

If any sessions are canceled due to low attendance, we will contact you.
Payment can be made in advance online. 
We strongly encourage prepayment, as it speeds up entry on the day of the event.  Payment may also be made by cash, check, or credit card on the day of the event.
Canned soda, bottled water, coffee, tea and snacks will be provided before each session.

11:00 a.m.-12:30 Webinar, AAA presentation on ASOP 41
As a bonus to people who can arrive extra early, we present a webinar on Revised ASOP 41, Actuarial Communications.  The recent release of a revision of ASOP No. 41, Actuarial Communications, brings important changes to the guidance relating to how actuaries communicate their work to intended users. Because of its broad application, ASOP No. 41 affects actuaries in every practice area. It is imperative for actuaries to understand this standard and the changes that will go into effect on May 1. Join us on March 23 to learn more about ASOP No. 41 and its guidance on a number of important issues, including:
The revised requirements for actuarial communications; What constitutes an actuarial report, and how to deal with specific circumstances; Required disclosures; and Deviation from ASOP guidance.
Here are the slides
This webinar is sponsored by the American Academy of Actuaries and is co-sponsored by ASPPA, CAS, CCA, and SOA.

The speakers include:
     Al Beer, MAAA, FCAS, and chairperson of the Actuarial Standards Board
     Jim Murphy, MAAA, FSA, and member of the Actuarial Standards Board
     Moderator: Sheila Kalkunte, Academy assistant general counsel
WHO SHOULD ATTEND:  Actuaries in every practice area

1:45 p.m.  Workshop Sessions A

A1:  Health Care Reform – Medical Loss Ratios & Rebates
Rowen B. Bell, FSA, MAAA,
Vice President, Forecasting & Financial Strategy, Health Care Service Corporation
Section 2718 of the Affordable Care Act (ACA) introduces new requirements for health insurers to provide premium rebates in the individual, small group, and large group markets in situations where the annual medical loss ratio falls below established thresholds.  This session will discuss Section 2718, subsequent regulatory developments, and the implications for health insurers.
Here are the slides.

A2:  Public Pension and Retiree Healthcare Crisis
Lance Weiss, FCA, MAAA, EA, Senior Actuary and Consultant, Gabriel, Roeder, Smith & Company
David Hilko, MAAA, EA,  Director, Deloitte Consulting LLP
Mounting public sector retirement costs pose a serious threat to many, not all, but definitely many state and local governments. Public officials must confront runaway public pension and retiree healthcare costs or risk voter backlash as these costs hit taxpayers in the pocketbook and force states to spend dollars on legacy obligations that otherwise could be used for education, services and infrastructure.  In fact, funding public pension plans today represents one of the most significant budget issues for many states and local governments.

Solving the public pension and retiree healthcare crisis requires prompt action. Government policy makers must address this challenge by developing sound funding policies for public pension systems and then have the discipline to follow them.

A3:  The Causes of The Great Recession
Louis D. Finney, Ph.D., Senior Economist and Principal, Mercer Investment Consulting
I will present my view of how the Great Recession of 2007 to 2009 unfolded.  There is much to cover—the housing market, regulation, rating agencies, and banks.  I will compare the recently issued report from the Financial Crisis Commission.

A4:  Implementing Principles Based Approaches (PBA) – Assumptions and Feedback
Mary J. Bahna-Nolan, FSA, CERA, MAAA, Director, PricewaterhouseCoopers LLP  
Whether you work for a US insurance company or an international company, principles based approaches for reserves and capital are coming.  A fundamental precept in any principles based approach is establishing the assumptions.  Both international and U.S. approaches require significant understanding of the underlying risk characteristics of the business being measured and regular review and update of assumptions.  This session will discuss what is required under the principles based regimes, what companies are doing regarding best estimate assumption setting (including what industry experience will be available), modeling validation and documentation and for the US, any initial findings from the VM-20 impact study currently underway as well as the Academy feedback loop.
Here are the slides.

A5:  Mortality Measurement and Modeling Beyond Age 100
Dr. Natalia S. Gavrilova, Ph.D.
Dr. Leonid A. Gavrilov, Ph.D
Session outlines limitations and pitfalls of mortality data at advanced ages as well as methodological problems related to mortality measurement after age 100. Methods of handling data at advanced ages are described using U.S. Social Security Death Master File records. Mortality modeling, approaches to hazard rate estimation and data quality control are also discussed. 
Here are the slides.
(August 2011) As a follow-up to our earlier meeting at Chicago Actuarial Association workshop we are pleased to share our new related study, just published by professional journal Demografie:
Ageing and Longevity: Mortality Laws and Mortality Forecasts for Ageing Populations
Demografie, 2011, 53(2): 109-128.
Full text is available upon the request.  Comments and suggestions are welcome.
Best wishes,
— Leonid and Natalia 

Canned soda, bottled water, coffee, tea and snacks will be provided before each session.

3:00 p.m.  Workshop Sessions B

B1:  Power Reading Mini-Lesson
Allan Goldin, President, Kinetic Advanced Learning
Power Reading will show your how to read 2,3,4 times faster with improved comprehension, better recall, and razor sharp concentration. Come to the lesson and learn how you can cut your reading time in half. Get better results on your Actuarial Test.  Guaranteed.

B2:  One Step Ahead: Seizing Actuarial Opportunities Today & Tomorrow
Margaret Resce Milkint, Managing Partner of The Jacobson Group
It’s no secret that the insurance landscape is changing—and fast! The pressure is on to meet key stakeholders’ demands while staying one step ahead of the competition; and the actuarial profession is no exception. It is more important than ever to be able to take on the rapidly-changing climate through innovation, business-savvy, and inspiring leadership. This session will explore the ongoing evolution of the actuarial professional from technician to business leader to emerging opportunities. What skills are needed to take on future challenges? What do organizations expect of future leaders? How can you step outside your comfort zone and take the risks necessary to obtain opportunity? How important has personal branding become in a networking environment that has expanded to include social media?
Here are the slides  

B3:  ERM and Business Intelligence:  Lessons from World War II Codebreakers
Tim Cardinal, FSA, MAAA, MBA
The NAIC’s Solvency Modernization Initiative and EU’s Solvency II require embedding Enterprise Risk Management (ERM) into culture, decision making and business activities. The financial crisis illustrated that embedding ERM is difficult to effectively implement in reality. Boards and Senior Management are taking steps to assess, challenge and improve the efficacy of their ERM programs by evolving beyond a framework towards a decision making process.
Here are the slides.

ERM acquires and implements business intelligence in making business decisions in the face of ambiguity. This session will explore how intelligence and ERM become useful when put into action resulting from choices made by an organization’s decision makers. Lessons will be drawn from military intelligence and WWII codebreakers. Parallels are made between codes, cryptanalysts and generals and ERM models, actuaries and senior management. This session will:
·Outline five fundamental stages if intelligence is to be useful
·Highlight and contrast WWII military intelligence examples in an ERM context
·Explore culture, processes and decision making from an ERM perspective

B4:  Investing and Retiring in a Struggling Economy
Daniel Winslow, FSA, CPA, Winslow Financial LLC
Kirk Kreikemeier, CFP®, CFA, FSA, Principal, Pebble Valley Wealth Management
Rafi Herzfeld, MAS, FSA
Where has our economy been? Where are we now?  Is the world O.K.?  Is the U.S. O.K.?   What are the problems all investors face?  What are some typical situations?  What are the tools to solve these problems?

B5:  International Insurance Accounting update (IFRS)
Douglas S. Van Dam, FSA, MAAA, Manager, Actuarial Services, PolySystems, Inc
During 2010 the IASB and the FASB released separate but similar draft proposals on how GAAP for insurance contracts should work in the future.  On February 9th, 2011, the FASB reiterated its interest in having an insurance accounting standard which matches or is similar to what the IASB will adopt.  This session will cover a brief review of the draft proposals, a summary of the comment letters received, insights from the SOA Financial Reporting Section research paper on implementing the proposals, and an update on what the two Boards are doing to reach a final standard. There will be time for Q&A.
Here are the slides.

Canned soda, bottled water, coffee, tea and snacks will be provided before each session.

4:15 p.m.  Workshop Sessions C

C1:  Making the Rate in 2011
Merrill F. Rajeck CFA, Owner/Manager, Jay Company – Investment Management
Making the assumed rate of return on present and future assets is a key variable in pension funding.  Hear a view from the portfolio management trenches.

C2:  Speed Networking
Pauline Reimer, ASA, MAAA, Pryor Associates
This session will provide an opportunity for actuaries to network with fellow actuaries to establish new relationships and further develop business connections. Speed Networking is conducted in a fashion similar to speed dating. Attendees are first paired and then rotated to a new partner every 5 minutes. This will allow attendees to network with many other participants over the course of the session.
C3:  The Next Financial Crisis
Timur Gök, Visiting Associate Professor, Director of the Arditti Center for Risk Management in the Department of Finance, DePaul University 
While the greatest economic and financial crisis since the Great Depression is fresh in our collective consciousness, it is time to think about the next financial crisis.  This presentation reviews factors that seemingly contributed to the crisis of 2008-09, highlights some parallels with previous crises, and draws inferences for the next financial crisis.
Slides?  Timur plans to publish an article based upon this presentation.  The link will be posted here

C4:  IFRS Update with Illustrative Model Results
Andy Ferris, FSA, MAAA, CFA, Senior Manager, Deloitte Consulting LLP
Kelly Cusick, ACAS, MAAA, Senior Manager, Deloitte Consulting LLP
Mark Yoest, FSA, MAAA, Senior Manager, Deloitte Consulting LLP
In 2010, the International Accounting Standards Board (IASB) released an Exposure Draft (ED) of IFRS 4 “Insurance Contracts” and the Financial Accounting Standards Board (FASB) issued a related Discussion Paper (DP).  The organizations have solicited stakeholders’ views and insights in form for written comment papers and roundtables. 

This session will briefly review the major themes from the comment letters roundtable sessions.  The session will then present selected results from preliminary modeling of various insurance products, including:
·Life Insurance
·Health Insurance
·Property and Casualty Insurance

Among other analysis, this will include comparisons of reserves and income patterns under current US GAAP, the IASB Exposure Draft, and the FASB Discussion Paper.

C5: Employer Options after Health Care Reform for Providing Coverage to Medicare Eligible Retirees
Alec Breckenridge, FSA, MAAA, Mercer
  ?Overview of employer options
  ?Medicare Supplements
  ?Medicare Advantage
  ?Part D Retiree Drug Subsidy
  ?Part D Employer Group Waiver Plans
  ?Individual policy market
  ?Comparison of options
  ?Key issues
  ?Employer contribution strategies
5:15 Reception (cocktails, wine, beer, soda pop) 

All workshop attendees are invited to attend this reception for drinks and socializing.
The bar remains open during dinner. 

5:45 Dinner
Approximate start time.
Dinner is optional.  The event fee is $100 with dinner, $85 without dinner
(Retirees, unemployed, and fulltime students get a reduced rate of $55 w/dinner, $40 without dinner)
Make your dinner selection when you register online.  After you register, you will receive a payment link e-mail.

(beef) Filet Mignon: goat cheese crust, peppered merlot reduction

(fish) Tilapia: lemon caper sauce

(vegetarian) Whole Wheat Fettuccini: sautéed artichoke hearts, sun dried tomatoes, garlic, olive oil, basil

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