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.

Aggregate Margin Task Force presentation of proposal to replace individual margin in VM-20 with aggregate margin approach. (August 22, 2013)

Annuity Reserve Work Group report to the Life Actuarial Task Force on potential reserve methodology for non-variable annuities in VM-22.

(August 22, 2013)
Annuity Reserve Work Group presentation to the Life Actuarial Task Force on potential reserve methodology for non-variable annuities in VM-22. (August 22, 2013)
Modeling Efficiency Work Group presentation to the Life Actuarial Task Force of the results of a modeling survey conducted in 2012. (August 22, 2013)
PBR Strategy Subgroup comment letter to the NAIC Principle-Based Reserving Implementation (EX) Task Force on the May 9 drafts of the PBR legislative and educational briefs.  
(June 11, 2013)
Presentation to the NAIC C-3 Phase II/AG 43 Subgroup on equity return calibration criteria for variable annuity reserve valuation.   (June 4, 2013)
Presentation to regulators at NAIC Financial Summit regarding practical application of PBR Valuation on life insurance.   (May 30, 2013)
PBR Strategy Subgroup comment letter to the NAIC Principle-Based Reserving Implementation (EX) Task Force regarding the potential impact of PBR in its draft legislative brief.  
(May 6, 2013)
Life Practice Council comment letter to the NAIC Principle-Based Reserving Implementation (EX) Task Force praising additional language in the April 3 NAIC PBR Draft Implementation Plan and offering assistance with evaluating and updating the PBR methodology.   
(May 6, 2013)
PBR Strategy Subgroup comment letter to the NAIC Principle-Based Reserves (EX) Task Force on its legislative brief outlining the ramifications of the Standard Valuation Law for state legislatures.  
(April 22, 2013)
Report on the results of a survey of modeling efficiency techniques among U.S. life insurers in 2012. (April 18, 2013)
Aggregate Margin Task Force update to the Life Actuarial Task Force on the development of aggregate margins to replace the current individual margins for use in VM-20. (April 4, 2013)
Life Reserves Work Group amendment proposal form outlining a modification to the current deterministic reserve in VM-20 submitted to the Life Actuarial Task Force. (April 4, 2013)
Life Reserve Work Group amendment proposal form to LATF on the method to recognize the effect of the Pre‐tax Investment Maintenance Reserve (PIMR) in VM-20 when calculating reserves. (April 4, 2013)
Life Reserves Work Group amendment proposal form to the Life Actuarial Task Force clarifying the approach in VM-20 to model policy loan cash flows in the deterministic reserve and stochastic reserve calculations. (April 4, 2013)
Presentation to National Conference of Insurance Legislators regarding the Implementation and Review process of Principle-based Reserves.  (March 8, 2013)
Comment letter to the National Association of Insurance Commissioners' Principles-Based Reserving (E) Working Group with suggested changes to its November 2012 draft implementation plan for principle-based reserving of life insurance. (January 11, 2013)
Annuity Reserve Work Group report on guaranteed living income benefits submitted to the Life Actuarial Task Force at the NAIC Fall 2012 National Meeting. (November 27, 2012)
Life Reserves Work Group presentation on background of VM-20 Asset Default Methodology and Development Process to the Life Actuarial Task Force at the NAIC Fall 2012 National Meeting. (November 27, 2012)
Life Practice Council comment letter to the NAIC commending the inclusion of a budget item for the purposes of “Actuarial Guideline 38/Principle-Based Reserving Implementation and Monitoring. (November 9, 2012)