Academy Statements on Principle-Based Reserving


The Academy has assembled materials to assist actuaries and regulators as the U.S. moves into the implementation phase of PBR for life insurance. Click here to access these materials. Public statements made by the Academy related to PBR are below.

Life Practice Council comment letter to the NAIC Principle-based Reserving Implementation (EX) Task Force on June 4 exposure of the Rector Report.
(June 25, 2014)
Life Practice Council comment letter to the Life Actuarial Task Force on ACLI’s proposed small company exemption to VM-20.
(May 15, 2014)
Principle-based Reserve Strategy Subgroup (PBRSS) comment letter to the NAIC suggesting topics to be discussed at a potential interim meeting of the PBR Implementation (EX) Task Force.
(April 23, 2014)
Principle-based Reserves Strategy Subgroup comments clarifying the suggestion to eliminate the net premium reserve (NPR) component of VM-20 in previous comments on Feb. 17 Report of Rector & Associates to the Principle-Based Reserving Implementation (EX) Task Force.
(April 11, 2014)
Life Experience Subcommittee presentation to the NAIC Life Actuarial Task Force on a mortality update on development of the 2014 Commissioners Standard Ordinary table, the 2014 Valuation Basic Table, and margins under VM-20 for determination of Prudent Estimate Mortality.
(March 27, 2014)
Life Reserves Work Group Amendment Proposal regarding treatment of due premiums in VM-20 reserve calculation. (March 27, 2014)
Principle-Based Reserve Strategy Subgroup comments on the exposed Feb. 17, 2014, Report of Rector & Associates, Inc. to the Principle-Based Reserving Implementation (EX) Task Force.
(March 21, 2014)
Life Reserves Work Group revised amendment proposal regarding treatment of due premiums in VM-20 reserve calculation.
(February 5, 2014)
Life Practice Council comments on proposed “actuarial standard” in Report of Rector & Associates to the NAIC Principle-Based Reserving Implementation (EX) Task Force. 
(January 15, 2014)
Annuity Reserves Work Group update to LATF’s VM-22 Subgroup on efforts towards development of appropriate utilization assumptions for Guaranteed Lifetime Income Benefits (GLIBs) in the floor reserve calculation. (December 13, 2013)
Life Financial Soundness/Risk Management Committee proposed amendment to NAIC’s Life Actuarial Task Force on whether the direct iteration approach for the deterministic reserve results in the same amount as the gross premium valuation approach currently required by VM-20. (December 13, 2013)
Life Reserves Work Group memo to the NAIC’s Life Actuarial Task Force of VM-20 on current and long-term spread tables. (December 13, 2013)
Life Practice Council comments on the Initial Report of Rector & Associates to the NAIC Principle-Based Reserving Implementation (EX) Task Force regarding assets for captive reinsurance.  
(November 15, 2013)
Presentation on principle-based reserving for life insurance products to the Southeastern Regulators Association Conference.
(October 3, 2013)
Life Practice Council presentation to the NAIC’s Center for Insurance Policy and Research Summit on issues related to internal modeling for PBR. (August 27, 2013)

Life Reserve Work Group amendment proposal to the Life Actuarial Task Force regarding treatment of letters of credit and other similar assets in the VM-20 reserve calculation.

(August 22, 2013)

Life Reserve Work Group amendment proposal to the Life Actuarial Task Force regarding treatment of due premiums in VM-20 reserve calculation.

(August 22, 2013)

Life Reserve Work Group amendment proposal to the Life Actuarial Task Force regarding treatment of due premiums in VM-20 reserve calculation.

(August 22, 2013)

Life Reserve Work Group amendment proposal to the Life Actuarial Task Force regarding treatment of individually underwritten certificates issued under a group life insurance contract.

(August 22, 2013)

Aggregate Margin Task Force proposal to replace individual margin in VM-20 with aggregate margin approach.

(August 22, 2013)