Printer-friendly versionThe Academy has been instrumental in the ambitious effort to modernize the framework for determining life insurers' statutory required capital and reserves in the United States.
The Principle-based Approach (PBA) to reserves and capital uses risk analysis and risk management techniques to capture underlying life insurance and annuity risks more accurately than the current rule-based, one-size-fits-all approach.
The Principle-based Approach (PBA) to reserves and capital uses risk analysis and risk management techniques to capture underlying life insurance and annuity risks more accurately than the current rule-based, one-size-fits-all approach.
PBA resources
- Introduction to PBA
- Recent reports from Life Practice Council groups to the NAIC on the principle-based project.
- The latest LATF exposure drafts (a link to the NAIC website's Life Actuarial Task Force page)
- Slides from December 13, 2012 Post-NAIC Update/PBA Webinar (#25)
- Slides from August 30, 2012 Post-NAIC Update/PBA Webinar (#24) and recording order form
- Life PBA—Test-Drive the New VM-20 Seminar Materials
- Modeling Efficiency Resources
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PBA Practice notes:
- Practice Note and addendum on the Application of C3 Phase II and Actuarial Guideline 43 (March 2011)
- Scenario and Cell Model Reduction Practice Note by the Modeling Efficiency Work Group (September 2010)
- C3 Phase III Practice Note by the Life Reserves and Capital Practice Note Work Group (December 2009)
- Economic Scenario Generators
- An ASB task force's November 2010 discussion draft on principle-based reserve standards.
