Lewis & Ellis, Inc. are now members of the Institutional Life Markets Association (ILMA). ILMA is a trade association serving primarily investors' interests in the longevity and mortality-related marketplace. By creating innovative capital market solutions, ILMA members help to expand consumer choice in one of their most important assets - their life insurance. The Association is a leader in establishing best practices and in raising awareness about this growing and vital industry. Roger Annin is the primary contact at L&E for ILMA.
Tim DeMars, FSA, FIA, MAAA, of our London & Kansas City offices will be speaking on "Life Expectancies: Portfolio Managers and Advisors Talk about the Results" at The Life Settlements Conference 2012 - a DealFlow Media Event in Las Vegas on September 10.
Scott Morrow, FSA, FIA, MAAA, of our London & Kansas City offices, presented the Annuity survey results portion of the SOA Research Department's Mortality Improvement Survey Webcast on Tuesday, July 24.
Roger Annin, FSA, FIA, MAAA, and Scott Morrow, FSA, FIA, MAAA, of our London & Kansas City offices, serve on the SOA's Mortality Improvement Survey Subcommittee and are two of the authors of the Report of the Society of Actuaries Mortality Improvement (Life – Reinsurer), Report of the Society of Actuaries Mortality Improvement (Life – Direct), and Report of the Society of Actuaries Mortality Improvement (Annuity). These reports present the results of the Mortality Improvement Survey for reinsurers of life insurance, direct insurers, and insurance companies and respondents who write annuity business conducted by the Society of Actuaries (SOA) Committee on Life Insurance Mortality and Underwriting Surveys.
Terry Long, FSA, MAAA, of our Kansas City office will be a facilitator at the 2012 Valuation Actuary Symposium in Los Angeles on September 11. Terry Long will serve as a facilitator for Session 58 OF - Smaller Insurance Company Chief and Corporate Actuaries Forum. This popular forum, now in its tenth year, has a unique format and focus on issues faced by actuaries in leadership positions at smaller insurance companies.
In June, Financier Worldwide spoke with Tim DeMars, FSA, FIA, MAAA, of our London & Kansas City offices, about the outlook for life settlement funds for their 10 Questions column. Life settlements are viable investments because of regulatory constraints that create an arbitrage opportunity after a policy is issued. Financier Worldwide is a leading publisher of news and analysis on the global corporate finance market place.
The Standard Valuation Law (“SVL”) defines the minimum standards to be used in the calculation of life insurance and annuity reserves. Due to the current low interest rate environment, it is all but certain that the maximum valuation interest rates for 2013 life insurance issues will decrease. For life insurance contracts with interest guarantee periods of more than twenty years, the maximum valuation interest rate will automatically decrease from 4.00% to 3.50%. As a result, all products currently issued using 4.00% reserve factors will need new reserve factors based on a 3.5% valuation interest rate if they are issued in 2013.
Lewis & Ellis' actuaries are prepared to provide expert guidance to our clients and have summarized options and how to plan for these changes in 2013 Changes in the Valuation Interest Rate. It will be updated on a regular basis. So, please check back regularly for updates.
Cabe Chadick, FSA, MAAA, of our Dallas office, served as the Interim Chief Actuary for the California Department of Managed Health Care from March through June 2012. In that role, Cabe helped the Department with policy issues resulting from the Patient Protection and Affordable Care Act, including health insurance rate reviews, exchange development, as well as reinsurance and risk adjustment.
California has a unique two-agency insurance/health plan oversight system with the Department of Managed Health Care overseeing HMOs and the Department of Insurance overseeing traditional insurers. The Chief Actuary must liaison with the CA DOI, consumer groups, CA health plans, as well as new federal rate review authorities. The Department of Managed Health Care is growing its actuarial staff, and Cabe enjoyed his contribution to that effort as well.
David Dillon, FSA, MAAA, of our Dallas office, spoke on "Premium Deficiency Reserves and Other Financial Reporting Issues for Dental Insurers" at the Delta Dental 2012 Underwriting, Actuarial, and CFO Conference which was held in New Orleans on April 30 - May 2.
Jill Humes, FSA, MAAA, and Terry Long, FSA, MAAA, of our Kansas City office, attended the SOA's 2012 Life & Annuity Symposium which was held in Los Angeles on May 21 & 22. Terry was the Program Committee Chair for the event, a presenter for Session 69 - The Challenge of Low Interest Rates, and a moderator in the Closing General Session - The International Regulatory Landscape. Jill was a facilitator for Session 048 BG - Hot Topics for the Smaller Insurance Companies.
Dave Dillon, FSA, MAAA, and Mike Mayberry, FSA, MAAA, of our Dallas office, attended and spoke at the Society of Financial Examiners 2012 Career Development Seminar which was held in Dallas on July 29 - August 1.
Dave Dillon spoke on "Clear as Actuarial Mud - Contract Reserve Strengthening vs. Premium Deficiency Reserves vs. Asset Adequacy Analysis". This included a discussion on how SSAP 54 defines reserves that must be established for an A&H contract including Premium Deficiency Reserves. The AOMR requires that reserves are adequate in light of company assets. Similarities between these actuarial requirements can cause much confusion. The purpose and scope of these actuarial requirements were clarified.
Mike Mayberry spoke on "Why Life Companies use Captives". Attendees learned why life insurance companies use captive subsidiaries to reinsure excess reserves. Mike provided background and insight on reserving under AG38 and why it may be appropriate to finance excess reserves created by the AG38 calculation using a captive insurer.
Lewis & Ellis' health actuaries consult with both insurance companies and insurance departments. Recently, Tom Handley, FSA, MAAA, of our Kansas City office, provided his expertise on health care and was quoted in The Star's Editorial - Moving beyond the individual mandate, which appeared in The Kansas City Star on Sunday, March 18, 2012.
Terry Long, FSA, gave a presentation on "Valuation, Products and Product Management in a Low Interest Rate Environment" at the Chicago Actuarial Association's Annual March Workshops Meeting on March 13, 2012. This presentation covers sources of valuation and nonforfeiture interest rates, strategies for managing in force blocks of business, and strategies for managing new business.
Roger Annin, FSA, FIA, MAAA, of our London & Kansas City offices, spoke on "Valuation Standards" at the International Life Settlements Conference 2012 sponsored by Deal Flow Media and held in London on May 1 & 2.
Roger Annin, FSA, FIA, MAAA, of our London & Kansas City offices, was invited to speak on "How to Maximize Portfolio Value" at the Institutional Life Markets Association (ILMA) which was held in London on Monday, April 30, 2012. Mr. Annin brought an actuarial perspective to many of the issues affecting established and new funds in the longevity market.
Roger Annin, FSA, FIA, MAAA, of our London & Kansas City offices, presented statistical information for actual versus expected claims experience for a major underwriter at the LEPr Conference in New York City on Wednesday, March 14th.
Lewis & Ellis has ranked 8th in the A.M. Best ranking of "Top Actuarial Firms by NPW for 2010" that has been published in the January 2012 issue of Best's Review magazine (pages 45,46). This ranking focuses on independent actuaries that provide an annual statutory actuarial opinion regarding an insurer's policy and claim reserves.
Scott Gibson, FSA, MAAA, of our Dallas office, was a panelist for the Investor's Roundtable, Life Settlements & Longevity Products, at the 11th Insurance Linked Securities Summit in the Cayman Islands in February.
Lewis & Ellis participated in the Society of Actuaries 2011 Annual Meeting & Exhibit held October 16-19, 2011 in Chicago. L&E attendees were Roger Annin, Karen Elsom, Leon Langlitz (presenter), Terry Long, Scott Morrow, Tony Proulx and Brian Rankin. Leon Langlitz, FSA, MAAA, of our Kansas City office, presented at Session 31 - WRM Workshop for Small Companies with Max Rudolph of Rudolph Financial Consulting, LLC.
L&E was an exhibitor and our door prize was a $150 gift certificate to Fiorella's Jack Stack Barbecue of Kansas City. Jack Stack has been a premier BBQ restaurant in Kansas City for 50 years. The lucky winner was Robert Gandjean of SCOR Global Life Americas in New York City. Congratulations Robert and enjoy the flavor of Kansas City. For everyone else not fortunate enough to win, L&E offered a free L&E sticky notepad.
Our thanks to everyone who visited our booth.
Leon Langlitz, FSA, MAAA, of our Kansas City office, gave an Actuarial Update at the National Alliance of Life Companies (NALC) 2011 Fall Conference in Park City, Utah, in September 2011.
Roger Annin, FSA, FIA, MAAA, of our London & Kansas City offices, and Scott Gibson, FSA, MAAA, of our Dallas office, were panelists at The Life Settlements Conference 2011 in Las Vegas sponsored by Deal Flow Media in September 2011.
Roger was a panelist for the "Life Expectancies: How Are Fund Managers Analyzing Mortality Estimates?" session. Fund managers increasingly are putting into place strategies to analyze life expectancies based on mortality experience with their own portfolios. Is this making the bickering between the two factions of life expectancy underwriters less relevant to the market? Are life expectancies more accurate in the three years since life expectancies were extended or is it too early to tell?
Scott was a panelist for the "Texas: Why is the Lone Star State Such a Magnet for Alleged Life Settlement Frauds?" session. The Texas Legislature passed a law this year giving insurance regulators more tools to stop fraud, but they failed to make investments in life settlements a security. From the Retirement Value and National Life Settlements receiverships to the Life Partners' SEC investigation, this panel discussed why Texas is at the forefront for a slew of regulatory actions.
Roger Annin, FSA, FIA, MAAA, of our London & Kansas City offices, spoke on "Many Facets of Due Diligence" at the LISA 2011 Compliance Conference in Atlanta in October 2011. Roger discussed financial due diligence as it relates to portfolio and policy acquisitions.
Terry Long, FSA, MAAA, of our Kansas City office, John Palmer of First Consulting and Administration, and Ralph Spaulding of Hinman Straub P.C. were part of a panel discussion on "Product Innovation - Creating and Managing Innovative Product Development" for Session 21 - Fostering an Innovative Environment at the Association of Insurance Compliance Professionals (AICP) Annual Conference in Orlando in September 2011.
Tom Handley, FSA, gave a presentation on "ACOs/COOPs: An Actuarial Analysis and Cost Considerations" at the AAMSE ACO/COOP Summit on July 20, 2011. This presentation reviews actuarial issues and important cost considerations for ACOs and COOPs.
Tom Handley, FSA, MAAA, of our Kansas City office, gave a presentation on Historical Trends in Health Care Costs - 1960 to Present for Session 17 PD - Current Medical Trend Drivers at the SOA 2011 Health Meeting in Boston on June 14, 2011. He was quoted in the "SOA Speakers Bring the Numbers" article that appeared in the Life & Health National Underwriter on June 14, 2011.
Tom's presentation examined historical changes in costs and the financing of health care from 1960 to the present plus a comparison of US health care costs to other industrialized countries with an identification of the potential causes of the higher US costs.
Lewis & Ellis' health actuaries consult with both insurance companies and insurance departments. Thus we're active both in developing products and in reviewing rate filings. Recently we assisted Iowa with rate reviews and were mentioned in the article "Insurance official cuts back Wellmark rate hike" that appeared in The Des Moines Register on January 29, 2011.