Description: Introduces terms and concepts of Takaful (Islamic) insurance and describes the processes, goals and constraints that apply to the investments of such insurers.

Description: Explains the more granular breakout of bond RBC factors proposed to the NAIC. Evaluates alternative asset allocation choices for insurers under the new rules.

Description: This article describes the nature and features of collateralized mortgage obligations [CMO], identifies their key risk factors, and suggests steps that small insurers can take to effectively and economically model them.

Description: Investment Fallacies: Mathematical modeling of social phenomena

Description: Investment Fallacies: On the Validity of Common Portfolio Return Assumptions

Description: Investment Fallacies: Gambler’s Fallacy: Probability of Reversion

Description: In this article the author concludes that “terrorism may foster a sense of conservatism that we may now need in the marketplace. Now that policy may have to be changed. In the process, risk will become better understood, common sense can replace, to some extent, the irrational behavior or excessive risk taking of the past and we will all appreciate our financial situation much more, and won’t expose ourselves to unrealistic expectations as much Hopefully the actuarial profession can respond to the challenge, since we are the best qualified to quantify such risks in the marketplace.”

Description: This article highlights the Annual Meeting Session 39 on the Equity Risk Premium (ERP), mentions related sources. Further, it asks whether in the future we will no longer regard the ERP as a single monolithic entity but as a mosaic of premia, and also whether individual investors presently are too optimistic.

Description: Summarizes the state of US government balance sheet and defends the view that inflation will not rise sharply in the next few years.

Description: New Zealand is about to launch its first variable annuity with guaranteed lifetime withdrawal benefits. The product design is mindful of the lessons from the financial crisis in the United States, Europe and Japan.