Members Only
ERM
Exploring the Asian Solvency Framework: Japan and Korea
In this concluding session of our three-part series, our speakers will explore recent developments in insurance solvency regulations across Asia, focusing on Japan’s Economic Value-Based Solvency Regulation (ESR) and Korea’s K-ICS. We will examine the design, implementation status, and key challenges of each framework. In Japan, preparations are underway for the implementation of ESR in the fiscal year ending March 2026, with key issues including strengthening governance, managing interest rate risk, and enhancing disclosure practices. In contrast, Korea has already adopted K-ICS, facing practical challenges such as alignment with IFRS 17 and disparities in company readiness. The session will also discuss how both systems align with international capital standards (ICS) and the strategic responses required from insurers. It will provide practical insights for industry professionals navigating this period of regulatory transition.
AI / Data Science
Applying Large Language Models (LLMs) in Claims Processing
In this insightful webinar, Dr. Małgorzata Śmietanka explores the transformative potential of Large Language Models (LLMs) in the insurance claims process. From automating document OCR and anonymizing sensitive data to reasoning over unstructured text, LLMs offer powerful capabilities to streamline and enhance key claims workflows.
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General Insurance
Individual claims reserving using the Aalen–Johansen estimator
We present an individual claims reserving model based on the conditional Aalen–Johansen estimator, as developed in Bladt and Furrer ((2023a) arXiv:2303.02119.). In our approach, we formulate a multi-state problem, where the underlying variable is the individual claim size, rather than time. The states in this model represent development periods, and we estimate the cumulative density function of individual claim sizes using the conditional Aalen–Johansen method as transition probabilities to an absorbing state. Our methodology reinterprets the concept of multi-state models and offers a strategy for modeling the complete curve of individual claim sizes. To illustrate our approach, we apply our model to both simulated and real datasets. Having access to the entire dataset enables us to support the use of our approach by comparing the predicted total final cost with the actual amount, as well as evaluating it in terms of the continuously ranked probability score.
Members Only
Social Security
Social Security Reforms in Latin America – Actuarial Guidelines
Latin America is facing the problems of ageing and the results of social security schemes (pensions) based on pay-as-you go basis or individual capitalization. In both cases, respectively problems are arising, due to the negative gap between incomes as contributions and expenditures, and on low replacement rates. My experience in actuarial valuations and pension reforms indicates that there is a need of sound actuarial participation, with elevated level of professionalism and applying ISAP-1 and ISAP-2, with high abilities in communication. Also, negotiation and transparency are important subjects. Different participants, like social and economic sectors, implies a complicate area to achieve an agreement. What actuaries can do? We must work in teams, without losing our identity and professionalism, combining quantitative activity with soft abilities, to obtain consensus and at least, to get a reasonable medium term interim solution. The paper will show guidelines to perform an appropriate work in this social conflictive area of actuarial practice.
Members Only
Social Security
Consequences on measuring adequacy and sustainability in social security after pandemic
Labor markets, typically subject to ageing population, today are sensible also to the implications still deriving from the recent Covid-19 pandemic. In such scenario, it is increasingly challenging to ensure that social security systems continue to meet their objectives of adequacy of benefits and sustainability constraints. Financial sustainability and adequacy of benefits are two sides of the same matter and must be jointly considered. In the medium to long term, unsustainable pension systems may not be able to guarantee enough level of the benefits. At the same time, the financial sustainability, pursued through a compression of the benefits, may be not socially feasible. In this work the so-called Pension Wealth indicator (PW) is used to measure the adequacy on benefits provided by social security schemes, in the light of the after effects of the pandemic with a focus on the Italian workers’ protection system. PW is the ratio between the actual value, on pensionable age, of all the pension payments that are expected to be paid (generally for the entire life) and the last salary received. PW is highly related to the future mortality trends and its study may give useful information on how to face the recent shocks on expectancy of life. PW can be thought as the lump-sum needed to buy an annuity giving the same cash flow as that of a generic annuity. The PW is generally referred to old age pensioners, but the aim of this study is to present a redefinition of PW with reference to specific vulnerable workers: the Italian injured worker broken down by accidents and occupational diseases and by impairment level.
Members Only
AI / Data Science
How gaming technology is revolutionizing actuarial work – An actuarial use of GPU Technology
The same processors that once fueled the Bitcoin gold rush and now train cutting-edge AI like ChatGPT are quietly revolutionizing actuarial science. While cryptocurrencies harnessed GPU power to mine digital coins, and AI uses it to process billions of data points, actuaries are discovering these chips can run complex mortality simulations in minutes instead of days. What began as hardware for gaming graphics has become our most powerful tool - turning overnight batch processes into real-time analytics and making trillion-scenario modeling suddenly practical. This presentation will explore how this transformative technology is reshaping our field, and why the actuaries who master GPU computing will lead the next wave of insurance innovation.