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 Reserves Work Group report to LHATF on margins in Universal Life with a Secondary Guarantee. (March 1, 2010)
Response from the LRWG on New York Insurance Department’s proposed changes to the use of economic scenarios in VM-20 (December 3, 2009)
Life Reserves Work Group presented on it's findings in its report on Asset Default Costs for VM-20 to LHATF. (December 3, 2009)
Life Practice Note Steering Committee's addendum to the July 2009 C-3 Phase II and Actuarial Guideline XLIII Practice Note, providing guidance relative to additional questions raised by actuaries dealing with the implementation of Actuarial Guideline XLIII since the practice note was first published. (December 1, 2009)
Life Risk Based Capital Working Group slides for the PBR educational session presented by members of the Academy and LHATF. (September 30, 2009)
Life Reserves Work Group's Asset Subgroup presentation on addressing existing asset default costs in principle-based reserves calculations. (September 21, 2009)
Report by the Academy-SOA Valuation Table Team and document (Excel spreadsheet) on reserves for term and ULSG blocks. (September 21, 2009)
Amendment to VM-20 on assumptions requirements for principle-based reserves for life products. (September 1, 2009)
Consistency Work Group amendment to VM-00 clarifying risks to be included in a principle-based valuation. (September 1, 2009)
Valuation Table Team comment letter on concerns expressed by the American Council of Life Insurers to LHATF regarding the 2008 VBT Tables developed by the Valuation Basic Table Team. (July 28, 2009)
LRWG Asset Modeling Subgroup presentation to LHATF on methods for setting prescribed default costs on existing fixed income investments in VM-20. (June 11, 2009)
Annuity Reserves Work Group report to LHATF on valuing interest rates applicable to Guaranteed Lifetime Income Benefits for fixed deferred annuities. (June 11, 2009)
Life Governance Team comments to the PBR (EX) Working Group on the latest exposure draft of the Valuation Manual section addressing corporate governance. (June 5, 2009)
Annuity Reserves Work Group report to LHATF on valuing interest rates applicable to Guaranteed Lifetime Income Benefits for fixed deferred annuities. (June 1, 2009)
Consistency Work Group amendment proposal amending VM-00 to clarify risks to be included in a principle-based valuation. (June 1, 2009)
LRWG Asset Subgroup presentation on a proposed methodology for setting prescribed default costs on existing fixed income investments in VM-20. (March 15, 2009)
LRWG report to the LHATF on examples of universal life secondary guarantee reinsurance and analyzes the treatment of the presented situations under the current draft of VM-20. (March 14, 2009)
VLMT PBR Life Scope Subgroup draft report containing an analysis of potential scope and implementation options for Life Insurance Policy Reserves as outlined in VM-00, Section II of the Valuation Manual that is being developed by the VLMT PBR Life Scope Subgroup. (March 14, 2009)
Consistency Work Group draft amendment form for VM-00 revising language describing six underlying concepts of the principle-based approach, potentially in keeping with the draft standard valuation law. (March 1, 2009)
LRWG Asset Subgroup presentation to interested parties and regulators on a proposed methodology for setting prescribed net spreads on new investments in VM-20. (December 11, 2008)