Financial Reporting Research Update

The Financial Reporter, March 2025

By Gavin Stewart and Ronora Stryker

Research is a primary mission of the Financial Reporting Section. In fact, the Financial Reporting Section Council gathered members’ research ideas through a contest and is in the process of developing the winning idea further into a formal research project.  

Here is an update, as of December 2024, on projects in process and those recently completed. 

Currently In Process

“2024 Update of Mortality by Socioeconomic Category.” In the past few years, the Financial Reporting Section has funded several studies that examine U.S. population socioeconomic inequalities in mortality. This project updates past studies with data through 2022 and examines methodologies for estimating single-age mortality for ages 85 and over.

“Predictive Analytics and Life Insurance/Reinsurance.” Develops a resource on predictive analytics that will produce information, data, models, and/or empirical tools useful to life insurance/reinsurance professionals. This project is in the initial stage.

“Understanding Complex Assets in Life and Annuity Industries.” Examines the use of complex assets in the life and annuity industry compared to traditional public corporate bonds. Research will be underway soon. 

Recently Completed

"Adapting to A New Normal.” Examines how companies should adapt to a new baseline of high inflation, high volatility, geopolitical tension and high climate risks.

“17th Annual Emerging Risk Survey.” Tracks risk managers’ thoughts on emerging risks across time, identifies trends and examines the evolution of risk management practices. Among the key findings from the survey is that risk manager concerns focus on wars, climate and disruptive technology risks.

“2023 Update of Mortality by Socioeconomic Category.” This project updates past studies with data through 2021 and examines the impact of COVID-19 on mortality trends.

“Living to 100.” Focuses on aging: Increase in survival rates and the resulting increase in aging populations, together with its implications to social, financial, retirement and health care systems. It involves a symposium that was held in January 2023 and generated a lasting body of research to educate and aid individuals and policymakers in addressing the potential needs and services of the future advanced-age populations.

"Rating Agency Perspectives on Insurance Company Capital.” This study investigates and documents the approach rating agencies take when assessing insurance companies’ capital.

“Credit Insurance Disability Experience Study.” The project updates the 2014 experience study. This study was undertaken to ensure the ongoing adequacy of the modified 1985 CIDA table as specified in Valuation Manual Section VM-26 for single premium credit disability insurance. In addition, the shift in the distribution of sales by term between contracts issued in previous study periods to 2017 and 2021 was analyzed.

“Mortality Improvement Trend Analysis.” Using proprietary U.S. census data, this research examines the key drivers of mortality improvement and how they vary.

“Cause of Death Mortality by Socioeconomic Category in the United States.” This study seeks to identify the particular causes of death contributing to the growing disadvantage in mortality between the least and most affluent U.S. populations.

Questions About Research

Do you have an interest in getting involved in Financial Reporting Section-sponsored research or have a question about one or more of the section-sponsored projects above? If so, please contact Gavin Stewart or Ronora Stryker.

Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries, the newsletter editors, or the respective authors’ employers.

Gavin Stewart, FSA, is a member of the Financial Reporting Section Council and leads the council’s research activities. He can be reached at gavin@ladderlife.com.

Ronora Stryker, ASA, MAAA, is a senior practice research actuary for the Society of Actuaries. She can be reached at rstryker@soa.org.