Life News

The Joint Economic Scenario Generator Project Oversight Group of the American Academy of Actuaries and the Society of Actuaries updated a list of Frequently Asked Questions for Version 7 of the interest rate generator for life insurance products. 
(September 12, 2013)
Want to learn what you missed at the NAIC Summer Meeting? Register now for the Life Practice Council’s Sept. 19 webinar to learn about the Academy’s activities at the meeting and progress on principle-based reserving (PBR), which is now being adopted by the states. Speakers will lead an in-depth discussion of reserving developments for non-variable annuities (VM-22) and also provide updates on Life Actuarial Task Force activity and the Academy’s professionalism initiatives.
(August 28, 2013)
The Life Illustration Work Group updated the practice note for Actuarial Standard of Practice No. 24, which outlines compliance with the NAIC Life Insurance Illustrations Model Regulation. (August 28, 2013)
Senior Life Fellow Nancy Bennett presented the Academy’s paper on lifetime income to the NAIC ERISA Retirement Income Working Group at the NAIC Summer National Meeting.  Her presentation examining the financial risks of increased lifespans and the needs for retirees to secure lifetime income was based upon the Lifetime Income Risk Joint Task Force’s “Risky Business: Living Longer Without Income for Life.” 
(August 24, 2013)
The C1 Work Group made a presentation to the NAIC Investment Risk-Based Capital Working Group on the benefits and uses of a representative portfolio for C1 factors in the Risk-Based Capital formula.   
(August 24, 2013)

The Life Practice Council and its subgroups delivered several presentations, reports and amendment proposals to the Life Actuarial Task Force on various topics at the August 22 and 23 meeting.  They included:

 

·         Amendment proposals on letters of credit, due premiums, and VM-20 scope

·         Report and presentation proposing an aggregate margin approach for VM-20

·         Report and presentation on a potential reserve methodology for non-variable annuities in VM-22

·         Report on nonforfeiture treatment of certain fixed deferred annuities

·         Presentation of a recent survey conducted on modeling efficiency

·         Presentation updating the task force on progress made by the AOMR Communication Group

(August 23, 2013)
The Life Practice Council sent its Legislation-In-Brief to the NAIC Principle-Based Reserving Implementation Task Force that outlines details of and support for the NAIC model Standard Valuation Law and PBR methodology.  The LPC plans to distribute the brief to state insurance regulators and legislators.  
(August 20, 2013)
Life PBR—The New Valuation World (Sept. 24–25): Register now for this interactive seminar that will combine instructor-led training with small-group discussions on the practical application of the principle-based reserving mechanics as outlined in VM-20. Principle-based reserve experts will discuss the latest developments, including the new PBR Actuarial Standard of Practice and PBR practice note—both expected to be completed this year. (July 24, 2013)
The C1 Work Group submitted a comment letter to the NAIC Investment Risk-Based Capital Working Group on the Illinois’ common stock proposal for C1 Risk-based Capital.  
(July 24, 2013)
Senior Life Fellow Nancy Bennett presented on annuities regulation at the National Conference of Insurance Legislators Summer Meeting. (July 13, 2013)
The Academy hosted a briefing on the need for retirees to secure a lifetime income. The briefing, "Risky Business: Living Longer Without Income for Life," coincides with the June 19 release of the Lifetime Income Risk Joint Task Force’s discussion paper. The Academy briefed policy makers on how improved life expectancy affects planning for retirement; the challenges to ensuring lifetime income; and potential solutions to the risk of outliving one's income, including emphasizing financial literacy and education, refocusing retirement plan design, and developing policies that support lifetime income needs. (June 27, 2013)
The American Academy of Actuaries will host a June 27 Capitol Hill briefing that will examine the financial risks of increased lifespans, and the need for retirees to secure lifetime income. The Academy’s Lifetime Income Initiative is part of its continuing effort to provide objective, unbiased information to serve the public and the United States actuarial profession. (June 20, 2013)
The Academy’s Lifetime Income Risk Joint Task Force, composed of actuaries from the life and pension practice areas, has released its discussion paper, Risky Business: Living Longer Without Income for Life. The discussion paper focuses on the issue of ensuring retirees secure income that lasts their entire lifetime and discusses potential solutions through changes in education, plan design, and federal retirement policy. Read the news release. (June 19, 2013)
The PBR Strategy Subgroup submitted an additional comment letter to the NAIC Principle-Based Reserving Implementation (EX) Task Force on the May 9 drafts of the PBR legislative and educational briefs.   
(June 11, 2013)
Life Practice Council members presented a practical application of PBR Valuation on life insurance products to regulators attending the NAIC Financial Summit. (May 30, 2013)
The PBR Strategy Subgroup submitted an additional comment letter to the NAIC Principle-Based Reserving Implementation (EX) Task Force regarding the potential impact of PBR in its draft legislative brief.
(May 6, 2013)
The Life Practice Council submitted a comment letter to the NAIC Principle-Based Reserving Implementation (EX) Task Force praising additional language in the April 3 NAIC PBR Draft Implementation Plan and offering assistance with evaluating and updating the PBR methodology.    (May 6, 2013)
The Life Practice Council presented a webinar reviewing the NAIC Spring 2013 National Meeting and progress on the principle-based approach (PBA) to life reserves. The December 23 webinar included updates on the activities of the NAIC’s Life Actuarial Task Force, PBR Implementation (EX) Task Force, Joint Qualified Actuary (A/B/C) Subgroup, and the Emerging Actuarial Issues (E) Working Group.  In addition the webinar covered Academy PBR efforts as well as a information on current professionalism issues.
(April 23, 2013)
The PBR Strategy Subgroup submitted a comment letter to the NAIC Principle-Based Reserves (EX) Task Force on legislative brief outlining the ramifications of the Standard Valuation Law for state legislatures.  
(April 22, 2013)
Join the Academy and the Society of Actuaries on June 4 to gain a better understanding of regulator perspectives on a variety of topics, including how actuaries can adapt to the new risk-focused exams, whether principle-based reserving (PBR) makes sense for small companies, and how the Own Risk and Solvency Assessment (ORSA) will evolve and help small companies. (April 19, 2013)