Principle-based approach (PBA) project

The 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.

PBA resources

Introduction to PBA [1]
Recent reports [2] from Life Practice Council groups to the NAIC on the principle-based project.
The latest LATF exposure drafts [3] (a link to the NAIC website's Life Actuarial Task Force page)
Slides [4] from December 13, 2012 Post-NAIC Update/PBA Webinar (#25)
Slides [5] from August 30, 2012 Post-NAIC Update/PBA Webinar (#24) and recording order form [6]
Life PBA—Test-Drive the New VM-20 Seminar Materials
- VM-20 Status Update Slides [7]
- VM-20 Mortality Assumption Requirements [8]
Modeling Efficiency Resources [9]
PBA Practice notes:
- Practice Note [10] and addendum [11] on the Application of C3 Phase II and Actuarial Guideline 43 (March 2011)
- Scenario and Cell Model Reduction Practice Note [12] by the Modeling Efficiency Work Group (September 2010)
- C3 Phase III Practice Note [13] by the Life Reserves and Capital Practice Note Work Group (December 2009)
Economic Scenario Generators [14]
An ASB task force's November 2010 discussion draft [15] on principle-based reserve standards.