Description: Global trends in both technology and regulation are causing U.S. insurers to reflect more deeply on their model risk management frameworks. The world has seen a rapid proliferation of AI-based tools accompanied with an overall increased usage of machine learning models, exacerbating model risk and reducing transparency in an unprecedented manner.

Description: Sponsored by the Society of Actuaries Research Expanding Boundaries Pool, this report examines an encompassing method to allocating economic capital in insurance conglomerates. Authored by Edward Furman, Yisub Kye, and Jianxi Su, the plan put forth unifies the centralized top-down and the detail-oriented bottom-up approaches

Description: For insurers to preserve and create value, they must understand their exposure to carbon and climate risks and develop decarbonization strategies. Transition plans facilitate this by encouraging organizational thinking and disclosure to the market. 2023 is a crucial year for progress on these initiatives amid evolving regulatory expectations. This session will provide an overview of the transition planning process, value creation and drivers identification, and how to incorporate these into transition and resiliency strategies. As part of climate risk mitigation strategies during transition and beyond, we will present a data and technology framework for insurers to more effectively manage climate risk. In particular, we will discuss dynamic climate risk management (DCRM) solutions which use data and technology to inform adaptation and resilience. Emerging technologies such as AI, IoT, and blockchain can also help insurers manage risks related to climate change more effectively. By attending the session, attendees will learn how to develop transition plans, adopt DCRM solutions and leverage emerging technologies to build resilience against the challenges caused by climate change.