Frank Zhang (CFA, FRM, FSA, MSCF, PRM Vice President, Risk Management Pacific Life Insurance Company)

Title: Actuarial Science and Financial Engineering in the Life Insurance Industry

Abstract: In this talk, we will review the latest in the life insurance industry, where capital market risks may dominate traditional non-market insurance risks. Actuarial science has evolved from traditional statistical model, based on law of large numbers for insurable risks. Financial engineering is fast becoming a critical tool for actuaries and risk managers in the industry. This is especially true for the variable annuity products, for which the industry has learned to adapt to a new set of pricing, reserving, and risk management practices and theories.