American Academy of Actuaries-Principles-based approaches

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Principles-Based Project

The Academy has taken the lead in an ambitious effort to establish a new framework for determining life insurers’ required capital and reserves in the United States.

The new method is based on a set of core principles and 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.

What's new

Webcasts
Periodic updates on the Life Practice Council's principles-based efforts
PBA seminar June 9-10
The Academy offers "Introduction to PBA: An Overview of a Principles-Based Approach (PBA) to Reserves and Capital" in Orlando June 9-10. Topics include elements of the PBA framework, the need for PBA, major PBA issues, implementation, and more.
Life reports to the NAIC
Recent reports from Life Practice Council groups to the NAIC on the principles-based project, including the draft valuation law manual
ASB task force discussion drafts
Discussion drafts on principles-based reserve standards, updated November 2007, and independent reviews of principles-based valuations (Note: Distribution authorized, but content NOT reviewed or approved by the Actuarial Standards Board)

Inside this section

This is the “home page” of the website section for the Academy’s principles-based life projects.

Use this online library to learn more about the principles-based approach to capital and reserve requirements, the Academy’s extensive work in this area, and related information.

Risk-based capital

Other resources

If you have a content-related suggestion, comment, or question, contact Natalie Jones (jones@actuary.org) or Anne Asplen (asplen@actuary.org).

Contingencies

Actuarial Update