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.

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)
Presentation to PBR Working Group on PBR Training for Regulatory Actuaries. (December 6, 2008)
Life Practice Council presentation on Principle-Based Reserving. (September 30, 2008)
American Academy of Actuaries and the Society of Actuaries comments to the NAIC. (August 31, 2008)
Life Financial Soundness/Risk Management Committee comments on company generated scenarios. (August 31, 2008)
Reinsurance Work Group comments to the NAIC on risk transfer rules. (July 15, 2008)
Life and Annuities Committee presentation on the role of the Academy in the development of PBR.
(June 30, 2008)
Life Reserves Work Group overview of asset modeling and discount rate issues in VM-20. (May 31, 2008)
Life Tax Steering Group comments on an IRS notice to life insurers about potential federal income tax issues concerning proposed principle-based reserving and proposed Actuarial Guideline VA-CARVM. (May 1, 2008)
Modeling Subgroup of the Life Reserves Work Group report to the National Association of Insurance Commissioners’ Life and Health Actuarial Task Force in Orlando, FL. (March 31, 2008)
Variable Universal Life Subgroup of the Life Reserves Work Group report to the National Association of Insurance Commissioners’ Life and Health Actuarial Task Force (LHATF) at the LHATF Spring 2008 NAIC Meeting. (March 31, 2008)
Report to NAIC's Life and Health Actuarial Task Force by the American Academy of Actuaries’ Reinsurance Work Group on Principles-Based Reserving Reinsurance Examples. (March 31, 2008)
Consistency Work Group report on definitions to include in VM-1 of the Valuation Manual as presented to the NAIC’s Life & Health Actuarial Task Force. (March 31, 2008)
Recommended changes to the statutory blank to accommodate principle-based reserving. (December 2, 2007)
(November 30, 2007)
Valuation and Law Manual Team report to the LHATF. (October 31, 2007)
Proposed revisions to draft valuation manual and review opinion requirements for a PBR valuation.
(October 24, 2007)