Earning & Solvency Management under Low Interest Rate Environment

17 September 2021

The Joint Regional Seminar (JRS) is an annual event co-organized by the Institute & Faculty of Actuaries and Actuaries Institute Australia with the support of the local actuarial societies in the region. The Actuarial Institute of Chinese Taipei (AICT) will host a half-day virtual local topic programme in the afternoon of 17 September. The theme of JRS 2021 is “The Post-pandemic Actuarial World".

Earning & Solvency Management under Low Interest Rate Environment 

Large-scale monetary policy has been deployed to relieve the economic impact and pessimistic outlook due to COVID-19 pandemic, resulting in an outlook of low interest rate environment. For most of the life insurers, low interest rate hurts. With reducing re-investment return, insurers face difficulties to satisfy policyholders' expected return in long term saving products. On the other hand, the attempt to shift from fixed income investment to other higher yield assets will result in solvency constraint under risk-based capital regime.

Is it a fact that we must live with a losing game? Or, should we challenge the status quote and ask ourselves: shall return and risk level always be bundled with interest rate level? To answer this question, it is of crucial significance for insurers to not only formulate alternative strategies in product and investment but also ensure they can be effectively orchestrated to optimize risk-adjusted return.

In this session, Christopher Tam and Sharon Tan, from Deloitte Actuarial and Insurance Solutions, will share their insights on:

  • How future insurance product creates value for policyholders instead of merely providing high guaranteed return;
  • How advanced strategic and tactical asset allocation analysis can help to identify asset classes with high risk-adjusted return timely; and
  • How future hedging program can achieve the objectives more timely and accurately.

The JRS Taipei Seminar will be held virtually in the afternoon of 17 September, 2:00PM - 5:30PM. Join Christopher and Sharon in their session to learn more.

Joint Regional Seminar 2021

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Christopher Tam

Christopher Tam

Director, Actuarial and Insurance Solutions

Chris (FSA, CERA, CPA, FRM) is a director in the life Insurance practice of Deloitte Actuarial based in Hong Kong, with around 12 years of industry and consulting experiences. Chris has worked as an a... More

Sharon Tan

Sharon Tan

Manager, Actuarial and Insurance Solutions

Sharon is a manager in the Life Insurance practice of Deloitte Actuarial based in Hong Kong. Sharon has 8 years of industry and consulting experience and worked in various areas, including SAA determi... More