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Risk-based capital:
Life insurance and fixed annuities

The Academy’s principle-based initiative is divided into three areas on the capital requirements side: life insurance, variable annuities, and fixed annuities. Use this page to stay up to date on the life insurance and fixed annuity RBC efforts.

Life insurance

The Academy’s C3 Phase 3 Life Capital Work Group (LCWG) plans to evaluate the interest-rate and market risk (C3) component of the current formula-based life RBC framework, in the context of life products valued under a principle-based reserving approach. The LCWG will work with the Academy’s Life Reserve Work Group and will recommend changes to the life RBC formula, as needed.

More info



Fixed annuities

A new Academy group, the C3 Phase 3 Annuity Capital Work Group (ACWG), has several  projects in the works. 

The ACWG plans to examine the consistency of regulatory capital requirements for equity-indexed annuities (EIAs), fixed deferred annuities, and payout annuities. It will also review the consistency between the C3 Phase I interest-rate generator and other scenario generators that the Life Capital Adequacy Subcommittee  (LCAS) has developed or is developing, as well as the consistency between C3 Phase I weighted percentile methodology and C3 Phase II conditional tail expectation methodology.  The work group will also consider the need to continue or modify the formula-based minimum and maximum feature in C-3 Phase 1 methodology.

The work group was created by the Life Capital Adequacy Subcommittee.

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related suggestion,
comment, or question,
please contact
Christopher Cassidy
(cassidy@actuary.org.)
or Dianna Pell
(pell@actuary.org)





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