Principle-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

• PBA 101 (PDF)
  An overview of the principle-based approach to reserves and capital in the U.S. for life and annuity products.
  
• Webcasts
  Periodic updates on the Life Practice Council's principle-based efforts.
• Life reports to the NAIC
  Recent reports from Life Practice Council groups to the NAIC on the principle-based project, including the draft valuation law manual.
• ASB task force discussion drafts
  Discussion drafts on principle-based reserve standards, updated November 2007, and independent reviews of principle-based valuations (Note: Distribution authorized, but content NOT reviewed or approved by the Actuarial Standards Board).
• Other Supporting Projects
  The Academy’s Modeling Efficiency Work Group has released a bibliography of efficient modeling techniques in their ongoing effort to streamline the modeling requirements that companies will face under principle-based reserving.
  

Inside this section

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

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

• Overview
• Principle-based reserving

• Life insurance
• Variable annuities
• Nonvariable annuities

• Risk-based capital

• Life insurance
• Variable annuities
• Fixed annuities

• Experience studies
• Other resources

If you have a content-related suggestion, comment, or question, contact Dianna Pell (pell@actuary.org) or Mike Roberts (roberts@actuary.org).

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