This Week: Jan. 23 - 27, 2017

Read the latest news from the Academy.

Recent Academy Activity, Jan. 23–27, 2017

Post-NAIC Webinar Covers Property/Casualty Issues

The Casualty Practice Council’s (CPC) post-NAIC casualty webinar Thursday reviewed top P/C issues—including an account of the Casualty Actuarial and Statistical (C) Task Force and other key meetings—from the NAIC Fall 2016 National Meeting, which took place in Miami in December. The webinar was moderated by CPC Vice President Rade Musulin and featured panelists Lauren Cavanaugh, chairperson of the Academy’s P/C Risk-Based Capital (RBC) Committee; Kevin Dyke, chief actuary of the Michigan Department of Insurance; and Academy Senior Casualty Fellow Jim MacGinnitie.

Dyke cited several ratemaking issues that have gained attention in the past year in NAIC work groups, and Cavanaugh—who presented on RBC, underwriting risk, and operational risk—said the Academy committee she chairs submitted a report recommending P/C underwriting risk factors be updated.

MacGinnitie covered cyber risk, group capital, and international regulations. He cited continuing dialogue with the International Association of Insurance Supervisors on capital standards, and noted that some European Union countries are imposing additional requirements on U.S. companies on solvency implementation. NAIC is questioning “qualified jurisdiction” status, and a Jan. 13 covered agreement announced by the U.S. Treasury Department may resolve some of these issues. Another NAIC task force is developing a cybersecurity model law and discussions on that subject are ongoing, MacGinnitie added.

Musulin noted the National Flood Insurance Program (NFIP) is scheduled to expire Sept. 30 and is up for congressional reauthorization this year. He cited the NFIP’s multiple, sometimes conflicting, objectives, including reducing the cost to the public of storm recovery and making flood insurance affordable and available; charging accurate rates while providing subsidies to some; and supporting land use planning and other mitigation. The Academy is developing a paper on catastrophe modeling and has a monograph on flood insurance in peer review, he said.

Slides and audio will be available soon for members without charge on the Academy’s webinar page.

Upcoming Events

  • Save the Date for PBR Boot Camp: Registration will open in early February for the Academy’s “PBR Boot Camp: Basic Training and Beyond,” to be held May 22–24 in Orlando, Fla., following two successful and sold-out boot camps last year. Members will be notified when registration opens.

P/C Loss Reserve, Life & Health Valuation Law Manuals

  • The Academy’s 2016 Property/Casualty Loss Reserve Law Manual is available to order. Updated annually and designed to help appointed property/casualty actuaries comply with NAIC annual statement requirements, the manual includes statements of actuarial opinion (SAO) requirements and state laws and regulations establishing those requirements; annual statement instructions for the SAOs for P/C, title loss, and loss expense reserves; and other pertinent annual statement instructions. It is available in two formats—web/online or CD-ROM—allowing actuaries to select the version that best suits their needs. Members can order online by logging in to the Academy’s website or via mail/fax.

  • The 2017 Life & Health Valuation Law Manual—designed to help appointed life and health actuaries comply with the requirements of the NAIC model Standard Valuation Law and the Model Actuarial Opinion and Memorandum Regulation—is available for preorder. The manual includes a current-topics section outlining key valuation developments and state guidance, NAIC model laws and regulations that have an effect on reserve calculations, a discussion of generally distributed interpretations, and copies of the current actuarial guidelines from the NAIC Examiners Handbook. Be one of the first to have this essential guide, and reserve your copy today.

Public Policy Activities

  • The Standard Valuation Law Interest Rate Modernization Work Group submitted comments to the NAIC’s Life Actuarial Task Force on its “VM-22: Maximum Valuation Interest Rates for Income Annuities” exposure draft.

  • The Health Financial Reporting and Solvency Committee sent comments to the Long-Term Care Valuation (B) Subgroup on asset treatment for stand-alone LTC asset adequacy analysis.

Alerts

  • President Donald Trump initiated two efforts Jan. 20 instructing federal agencies to take actions with respect to the Affordable Care Act (ACA) pending efforts to repeal it.

  • The U.S. Treasury Department’s Federal Insurance Office released a study Jan. 20 concluding that auto insurance is unaffordable for 18.6 million Americans.

  • Subscribe to Member Alerts: Subscribers to the Academy’s alerts are notified by email when a new alert is posted in their area(s) of interest. The alerts are available in five areas of focus: casualty, health, life, pension, and cross-practice issues. Academy members may subscribe to any or all of them free of charge as a member service after signing in to the member section of the website.

In the News

  • A fact-checking article published by The Hill discussing whether the ACA is in a premium spiral quoted Academy Senior Health Fellow Cori Uccello on how steady enrollment and age distribution are not indicative of such a spiral.

  • LifeHealthPro and Fierce Healthcare ran stories focused on the Academy’s new issue paper evaluating the health insurance individual market and reform options.

  • The Academy’s jointly sponsored Actuaries Climate Index, which provides a quarterly gauge of changes in extreme weather events and sea levels, was cited by a number of media outlets, including Water Canada and Artemis.

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