Agenda
- 11:30 a.m. - 5:30 p.m. Insurance Legends’ Golf Classic
- 4:30 p.m. - 6:00 p.m. Registration
- 6:00 p.m. - 7:30 p.m. Reception
- 7:00 a.m. - 5:00 p.m. Registration
- 7:30 a.m. - 8:15 a.m.Breakfast
- 8:30 a.m. - 9:00 a.m.Welcome and Opening Commentsopen or Close
Bill Press, Master of Ceremonies; Bradley M. Smith, Immediate Past President, Society of Actuaries
- 9:00 a.m. - 10:15 a.m.Opening Session: Opportunities and Threats for Life Insurersopen or Close
Colin Devine, Insurance Industry Consultant, C Devine & AssociatesThe favorable demographics of an aging baby boom generation entering retirement and rising taxation rates present opportunities for unparalleled growth from products such as income oriented annuities, supplemental health and estate planning oriented life insurance. At the same time, many insurers find themselves saddled with large blocks of under-performing liabilities such as variable annuities with living benefits, long-term care and no-lapse universal life that will strain their balance sheets and depress returns for years, if not decades to come. Adding to the challenge is the prospect of a period of prolonged low long-term interest rates and relatively tight credit spreads. To manage successfully through this will necessitate making tough choices regarding product offerings, expense structures and distribution outlets. It will also require patience and careful managing of stakeholder expectations be they shareholders, regulators or rating agencies. The industry will also need to come to grips with private equity firms - are they friend or foe?
- 10:15 a.m. - 10:45 a.m.Refreshment Break
- 10:45 a.m. – 12:00 p.m.Redefining the Industry—A CEO Perspective on Managing inOpen or Close
a (Very Prolonged) Low-Interest Rate EnvironmentEven before the financial crisis in 2008, life insurers were challenged by interest rates cycles. Since the financial crisis, the Fed has purposely held interest rates at low levels and signals to continue for at least the short foreseeable future. This group of company CEO's will discuss the impact of prolonged low interest rates on sales, product pricing, risk and capital management, and M & A activity.
Moderator
Chris Stroup, Chairman & Chief Executive Officer, Wilton RePresenters
Anthony Garcia, President, Western & SouthernEric Henderson, Senior Vice President, Individual Products & Solutions, Nationwide Financial Eileen McDonnell, President & Chief Executive Officer, Penn Mutual - 12:00 p.m. - 2:00 p.m.Networking Luncheon
- 2:00 p.m. – 3:00 p.m.Concurrent Sessions
- 1A: Medical Advances—Effects on Mortality and MorbidityOpen or Close
This session will cover three topics:
Centenarians–One approach to understanding longevity is to study the population that has attained it. This presentation will discuss the ongoing scientific research into groups of Centenarians. How do they differ from the general population? Are there basic genetic or lifestyle differences that might be deciphered and applied to prolong the human lifespan?
Presenter
Richard E. Braun, MD, Vice President and Chief Medical Officer, Generali USA Life ReassuranceAlzheimer’s and Brain Trauma–This presentation will discuss the importance of AD; why it is growing as a cause of death; and how it will impact mortality improvement at older ages. What is the cause of death for people with Alzheimer’s? Does brain trauma cause Alzheimer’s?
Presenter
David Wesley, MD, Vice President and Director, Medical Research, SCOR Global Life AmericasMorbidity–This presentation will discuss how medical advances are impacting morbidity. New technology has led to increased screening and disease detection. Clinical doctors are also changing the way diseases are defined affecting disease incidence rates and disability risk. New treatments also come at a cost. These issues have relevance to health products and other living benefits such as critical illness, surgery products, and disability.
Presenter
Philip Smalley, MD, FRCPC, Vice President and Medical Director, RGA International Corporation
- 1B: Impact of Low-Interest Rate Environment on Financial Reporting and Performance MeasurementOpen or Close
This session will discuss the impact of the current and projected low interest rate environment on several financial reporting and performance/risk measurement frameworks, including: US GAAP and IFRS, Solvency frameworks in the United States and elsewhere, economic capital, MCEV, and U.S. statutory and tax reserves. This group of industry experts will discuss some of the thematic implications raised by the intersection of low interest rates with the implementation of these frameworks for insurers and reinsurers.
Moderator
Darryl Wagner, Principal, Deloitte Consulting LLPPresenters
Tom Chamberlain, Senior Manager, Deloitte Consulting LLP
Joseph Sikora, Senior Vice President & Chief Actuary, Hannover Life Reassurance Company of America - 1C: Effect of Low Interest Rates and Eurozone Problems in Europe Open or Close
The persistent low-interest rate environment in Europe continues to challenge life insurance companies to maintain pricing spreads as many insurance products still contain a minimum interest guarantee for the life of the policy that is increasingly difficult to service. Some of the major players publicly report MCEV numbers that show the economic effects of options and guarantees. The difficult market situation puts pressure on the companies. Solvency II also will crystallize this impact in more detail. Meanwhile, regulators are watching the situation very carefully, e.g., Germany has introduced a mandatory addition to the actuarial provision to reflect the low interest rate environment which is a drag on local GAAP earnings and consequently on companies' dividend paying ability. This group of industry experts will discuss the challenges life insurers face - as a consequence of the current crisis and increased economic reporting focus, life insurers are moving away from guaranteed products pushing more protection and unit linked type products.
Moderator / Presenter
Nardeep Sangha, Managing Director & Global Head of Life and Health Risk Transformation, Swiss Re - 3:00 p.m. - 3:30 p.m.Refreshment Break
- 3:30 p.m. - 4:30 p.m.The Impact of a Low-Interest Rate Environment on the Value of aOpen or Close
Life Insurance EnterpriseThe economic value of life insurance companies has been impacted by the low long-term interest rate environment. The stock market capitalization of life insurance companies has been reduced significantly from their historical norms. From lowering spreads on products with current and guaranteed credited interest rates, increasing the present value of long term benefits on fixed premium products (i.e., Long Term Care) to increasing the cost of hedging on variable annuity products, low long term interest rates have had an impact on the profitability of in-force products, as well as, the pricing and market viability of new products. This group of industry executives will discuss how their companies are coping with this issue, whether they believe it is temporary due to the actions of the federal reserve, and their view on the impact these low long term rates should have on the hurdle rates (i.e., discount rates) that should be used in assessing the value of life insurance companies.
Moderator
Bradley M. Smith, Chairman, MillimanPresenters
Rich Bielen, Vice Chairman & Chief Financial Officer, Protective Life Mike Sproule, Executive Vice President & Chief Financial Officer, New York Life Mark Konen, President, Insurance & Retirement Solutions, Lincoln Financial Group
- 5:00 p.m. - 6:30 p.m.Reception
- 7:30 a.m. - 5:00 p.m.Registration
- 7:30 a.m. - 8:15 a.m.Breakfast
- 8:30 a.m. – 9:00 a.m.Insurance Legends’ Awards Presentation
- 9:00 a.m. – 10:15 a.m.The Moment of Truth: Confronting Issues in AmericaOpen or Close
From his recent vantage point as the co-chair of the National Commission on Fiscal Responsibility and Reform, former U.S. Sen. Alan Simpson provides his candid take on the hard and tough decisions that lie ahead for America’s leaders in restoring fiscal restraint to the domestic agenda. With his trademark candor and wit, Simpson provides his insight on what’s going on in Congress and possible sensible policy options for reforming entitlements, immigration, taxes and balancing the national budget. Always unafraid to speak his mind and a favorite of the political media due to his humor and honesty, Simpson also sets his sights on politics in America and the future of the Republican Party.
Speaker
Sen. Alan Simpson - 10:15 a.m. - 10:45 a.m.Refreshment Break
- 10:45 a.m. – 12:00 p.m.Industry Growth in a Low-Interest Rate Environment ReinsuranceOpen or Close
CEO PanelSustained low interest rates hamper insurer growth and profitability while having significant impact in other areas – such as regulation and capital requirements. This group of industry executives will share their views about the long-term implications for life insurers and reinsurers. They also will evoke an interactive discussion around near-term strategies to deal with low interest rates as well as the potential for “black swan” scenarios, including industry transformation, renewed inflation and the possibility that regulatory and reform efforts will be derailed.
Moderator
Tricia Guinn, Managing Director, Towers WatsonPresenters
Michael DeKoning, President & Chief Executive Officer, Munich Re Peter Schaefer, President & Chief Executive Officer, Hannover Life Reassurance Company of America Neil Sprackling, President, U.S. Business, Swiss Re Llife & Health America Greig Woodring, President & Chief Executive Office, RGA - 12:00 p.m. - 2:00 p.m.Luncheon with SpeakerOpen or Close
Political Mayhem
Covering current events, O’Rourke combines the skill and discipline of an investigative reporter with a comedian’s sense of the absurd and the stupid. Known as a hard-bitten, cigar-smoking conservative, he, in fact, bashes all political persuasions. As he puts it, “Giving money and power to government is like giving whiskey and car keys to teenage boys.” Whether dealing with the inner workings of Washington bureaucracy or the shifting political and economic sands of the new world disorder, O’Rourke proves himself to be a savvy guide to national and global affairs. His razor sharp insight never fails to inform and entertain.Speaker
P.J. O’Rourke - 2:00 p.m. – 3:00 p.m.Concurrent Sessions
- 2A: Financial Underwriting—Double Digit Estate Projection in a Single Digit WorldOpen or Close
This session will review the role interest rates have on financial underwriting. This group of industry experts includes representatives from a distributor, a direct company, and a reinsurer. They will discuss the challenge of the appropriateness of estate projections. One key issue is the question of alignment among the three parties in writing new business. This session will be presented as a mock arbitration using the attendees as the adjudication panel.
Moderator
Tony Forte, Vice President, Underwriting Risk Management, Gen Re Life CorporationPresenters
DuWayne Kilbo, Principal, Windsor Insurance Associates, Inc. Kent Major, Vice President & Chief Underwriter, Aviva Life and Annuity Company Bill Moore, VP Underwriting and Medical, Munich America Reinsurance Company - 2B: Regulatory and Legislative Update Open or Close
ACLI senior staff will discuss political, regulatory, and legislative developments at the state and federal levels with a particular emphasis on proposals having significant implications for insurers.
Presenters
Bruce Ferguson, Senior Vice President, State Relations, ACLI Maurice Perkins, Senior Vice President, Federal Relations, ACLI - 2C: Be Careful What You Wish For—Spiking Interest Rates May Not Be Better Open or Close
Many industry experts were betting interest and inflation rates would have to increase after the economic crisis of 2008-09 with all of the stimulus packages offered by the federal government. However, interest rates have been artificially kept at record breaking lows by the Fed. A spike up in rates seems inevitable and will be good for our industry - or will it?
This group of industry executives will explore the effects on annuity products of an interest rate spike on current asset strategies, asset durations, policyholder behavior and shock lapses. Also discussed will be whether newer entrants into the annuity arena will fare better than older, established players and if conservation techniques can work. And lastly, they "make predictions" on how soon companies will offer higher guarantees if rates spike, or if we have finally learned our lesson!
- 3:00 p.m. - 3:30 p.m.Refreshment Break
- 3:30 p.m. - 4:45 p.m.Low-Interest Rate Environment—Product ImplicationsOpen or Close
Life insurer’s portfolios are continuing to feel the strain of record-low interest rates. Given current market and economic conditions, the prospect of today’s interest-rate levels persisting into the next few years is very real. The consequences of continued low interest rates are at the top of every C-suite’s agenda. Hear from this group of life insurance executives on how they are dealing with this significant industry headwind, including:
- In-force management
- Re-pricing of products
- Managing/changing product mix
- Eliminating product features/riders
- Existing product lines
- Increasing asset durations and/or allocation of risky assets
- Re-calibrating distributor compensation/incentives
- Enhancing risk management
Moderator
Doug French, Managing Principal–Insurance and Actuarial Advisory Services, Ernst & YoungPresenters
Fred Jonske, President & Chief Executive Officer, M Financial Group Dan Houston, President & Chief Executive Officer, Principal Financial Group Gary “Doc” Huffman, Chairman, President & Chief Executive Officer, Ohio National Life Insurance Co. Bill Wheeler, President, Americas , MetLife - 5:15 p.m. - 6:15 p.m.Reception
- 8:00 – 10:00 a.m.Registration
- 8:00 a.m. – 8:45 a.m.Breakfast
- 8:45 a.m. – 10:00 a.m.We Structured This Treaty So Carefully—Why Are We in Arbitration?Open or Close
This group of industry legal experts with experience in all parts of reinsurance transactions, from deal structuring to implementation to dispute resolution, will present a hypothetical case to a panel of arbitrators and to the audience for decision. The goal of this session is to identify "lessons learned” from prior transactions that can assist attendees with future transactions.
Moderator
Hugh McCormick, Partner, Duane Morris LLPPresenters
Gail Goering, Partner, Foley & Lardner LLP C. Spencer Alridge II, Vice President & Deputy General Counsel, SCOR Global Life Americas Dave Alberts, Partner, Mayer Brown