The importance of sound risk management in insurance enterprises has been dramatically highlighted by the financial crisis. Insurance operations escaped the harshest outcomes faced by the banking industry, largely because of the pioneering risk management solutions developed by the actuarial profession in collaboration with insurance regulators. But significant disarray and confusion remain in the risk management area, and the models and techniques that have brought us this far will need to be reviewed and revised to manage the strains still to come, and to manage the new circumstances and new products that continue to develop as we move through, and, hopefully, beyond the crisis.
A clear understanding of life insurance risk exposures and how best to manage them is the unifying theme for the proposed project. We will focus on developing and risk management techniques that are theoretically sound and practically feasible, and on disseminating these techniques to practising actuaries in risk management to maximize the practical impact of our work.