Principle-based Approach (PBA)

Modernization of the framework for determining life insurers' statutory required capital and reserves in the United States. Click here to know more about PBA.

Proposed Revisions to Draft Valuation Manual

Section 20: PBR requirements for life products.
Section 40: Review opinion requirements for a PBR valuation.
Section 50: Experience reporting requirements.
Section 51: Experience reporting formats.

(November 30, 2007)

Valuation and Law Manual Team Report to LHATF

Valuation and Law Manual Team report to the LHATF. (October 31, 2007)

Review Opinion Requirements for Principle-Based Valuation VM-40

Proposed revisions to draft valuation manual and review opinion requirements for a PBR valuation.
(October 24, 2007)

Proposed Revisions to Experience Reporting Requirements VM-50

Proposed revisions to draft valuation manual. Section 50: Experience reporting requirements. (September 30, 2007)

Draft Valuation Manual

Draft valuation manual (September 2007):

Section 0: Introduction
Section 1: Definitions for terms in requirements
Section 2: Definitions for types of contracts
Section 3: Applicability to contracts
Section 5: Draft model standard valuation law
Section 20: PBR requirements for life products
Section 22: PBR requirements for non-variable annuities
Section 25: Health insurance minimum reserve requirements
Section 26: Life and disability reserve requirements
Section 30: Actuarial opinion and memorandum requirements
Section 31: Reporting and documentation requirements for business subject to a PBR valuation and memorandum requirements
Section 40: Review opinion requirements for a PBR valuation
Section 50: Experience reporting requirements
Section 51: Experience reporting formats

(September 30, 2007)

Sample PBR Actuarial Report for Life Polices Subject to PBR Valuation

Sample actuarial report for life policies subject to PBR valuation. (September 30, 2007)

CWG Report to NAIC on PBA for Life, Annuity and Health Products

Consistency Work Group report on the Conceptual Framework of a Principles-Based Approach for Life, Annuity and Health Products and On the Purpose of Reserves and Risk-based Capital under a Principles-Based Approach. (September 30, 2007)

Proposed Test for Material Tail Risk by LRWG Group Modeling Subgroup

Life Reserves Modeling Subgroup report on a possible tail risk test. (September 30, 2007)

Modeling Efficiency Work Group Status Report to NAIC

Modeling Efficiency Work Group reports to the LHATF. (September 30, 2007)

Governance Requirements for Principles-Based Reserves and Capital for Life Insurance and PBA Governance Report

Report on governance requirements for principle-based life reserves and capital with exhibits.
(September 30, 2007)

Governance Requirements for Principles-Based Reserves and Capital for Life Insurance and PBA Governance Report

Report on governance requirements for principle-based life reserves and capital with exhibits.
(September 30, 2007)

RWG Report to NAIC on PBR Risk Transfer Requirements

Reinsurance Work Group report on PBR risk transfer requirements. (September 30, 2007)

Meeting Summary with New York State Insurance Department on PBR Proposal for Life Products

Summary of a meeting with a New York State Insurance Department official on life PBR. (September 30, 2007)

Comments on Life, Health Insurance Principles Proposed by NAIC PBRWG

Comments from Life, Health, and Casualty Practice Councils on life and health insurance principles proposed by the NAIC's Principle-based Reserving (EX) Working Group. (August 17, 2007)

LRWG Response to NY Insurance Department Comments on LRWG Proposal

Life Reserves Working Group response to the New York Insurance Department's comments on the Requirements for Principles-Based Reserves for Life Products from the LRWG. (July 31, 2007)

Valuation Law Manual and Report from Valuation and Law Manual Team

Valuation and Law Manual Team draft valuation manual plus accompanying report and slide presentation and news release. (June 30, 2007)

SVL2/PBA Presentation to LHATF

Life Financial Soundness/Risk Management (SVL2) Committee presentation to LHATF on SVL2/PBA. (June 1, 2007)

LRWG Update to LHATF on Requirements for Principle-Based Reserves for Life Products

LRWG report to LHATF and an update to the March LHATF exposure of the Requirements for Principle-based Reserves for Life Products. (June 1, 2007)

Principles-Based Valuation Review Opinion Requirements from Subgroup 1 of Valuation Law and Manual Team

Updated version, in requirement format, of a proposed draft model regulation for review opinions of principle-based valuations. (March 31, 2007)

Valuation Law and Manual Team Status Report and Presentation on Transition to Principle-based Framework

(March 31, 2007)