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.

Tax Work Group discussion paper regarding tax implications for structuring new commissioners’ mortality tables to include the extra mortality risk of business not subject to full underwriting. (December 14, 2011)
Tax Work Group discussion paper to the Life Actuarial Task Force and the American Council of Life Insurers regarding tax implications for structuring new commissioners’ mortality tables to include the extra mortality risk of business not subject to full underwriting. (December 7, 2011)
Tax Work Group, in conjunction with the Nonforfeiture Improvement Work Group, follow-up comment letter to the Life Actuarial Task Force with suggested revisions to VM-20. (October 12, 2011)
Tax Work Group in conjunction with the Nonforfeiture Improvement Work Group comment letter to the Life Actuarial Task Force regarding issues associated with proposed language in VM-02. (October 3, 2011)
Joint Academy/SOA Payout Annuity Table Team report regarding the 2012 Individual Annuity Reserving Table to the Life Actuarial Task Force of the NAIC. The team also included a presentation that was originally scheduled for the NAIC Summer Meeting in Philadelphia that was canceled. (September 28, 2011)
Life Reserves Work Group's amendment proposal form regarding the VM-20 to the NAIC's VM PBR Life Subgroup. (June 13, 2011)
Financial Soundness/Risk Management Committee amendment proposal to the NAIC's VM PBR Life Subgroup. (May 18, 2011)
Variable Annuity Practice Note Work Group practice note on the Application of C-3 Phase II and Actuarial Guideline XLIII. (April 6, 2011)
Variable Universal Life Subgroup report to the NAIC VM PBR Life Subgroup regarding deterministic return paths in VM-20. (October 1, 2010)
Modeling Efficiency Work Group practice note regarding scenario and cell model reduction. (September 22, 2010)
ARWG report to LHATF on statutory valuation of deposit fund contracts in Seattle. (August 1, 2010)
PBA 101 slides describing the history and basics of the principle-based approach to reserves and capital. (August 1, 2010)
Amendment proposals to the VM-20 regarding consistent simplification, scenario reduction, the stochastic exclusion test and supplemental information on the reinvestment spread proposal. (July 1, 2010)
LRWG amendment proposal to the VM-20 regarding margin ratios. (June 1, 2010)
Amendment proposal to the VM-20 to modify requirements for prescribed reinvestment asset spreads. (June 1, 2010)
Life Practice Council letter to the National Association of Insurance Commissioners (NAIC) (EX) Working Group and Life Insurance and Annuities (A) Committee on principles-based valuation and capital approach (PBA) for life insurance. (May 12, 2010)
Review and recommendation for definitions in VM-01. (March 1, 2010)
Amendment to VM-20 by the Life Reserves Work Group with accompanying theoretical foundation. (March 1, 2010)
Joint Academy/SOA update on mortality development and margins. (March 1, 2010)
Life Reserves Work Group report to LHATF in response to an SOA report on PBA. (March 1, 2010)