The Operational Risk Work Group submitted comments to the NAIC on the Life Risk-Based Capital (RBC) operational risk factor.( )
The Life Principle-Based Approach Practice Note Work Group released the final practice note, Life Principle-Based Reserves Under VM-20, to assist actuaries with the implementation of the principle-based life reserve valuation approach adopted by the NAIC as detailed in the Requirements for Principle-Based Reserves for Life Products—VM-20.
The Life Reserves Work Group submitted an amendment proposal form to the National Association of Insurance Commissioners Life Actuarial Task Force regarding the VM-20 wording on modeling of policy loans and separate account assets.
The Principle-Based Reserve (PBR) Model Governance Practice Note Work Group released a new practice note to provide additional information for practicing life actuaries seeking to better understand models, model risks, model governance, and related issues, as these actuaries implement PBR.
Tricia Matson, chairperson of the Longevity Risk Task Force, presented an update on efforts to develop a methodology for recognizing longevity risk in statutory reserves and risk-based capital (RBC) to the NAIC's Life RBC Working Group.( )
Mary Bahna-Nolan, chairperson of the joint committee of the Academy’s Life Experience Committee and SOA Preferred Mortality Oversight Group, presented updates on its work to the Life Actuarial Task Force (LATF) on guaranteed issue and preneed mortality tables, and simplified issue and accelerated underwriting mortality under VM-20.( )
The Life Operational Risk Work Group submitted comments to the NAIC's Operational Risk (E) Subgroup on a draft report on operational life risk-based capital.( )
The SVL Interest Rate Modernization Work Group submitted comments to the NAIC's VM-22 (A) Subgroup on the VM-22 Maximum Valuation Interest Rates for Income Annuities draft report.( )
The SVL Interest Rate Modernization Work Group submitted comments on a revised weighting methodology proposal to the NAIC's VM-22 (A) Subgroup.( )
The AG 43/C-3 Phase II Work Group submitted comments to the NAIC’s Variable Annuities Issues (E) Working Group on version 1 of the draft specifications for the second quantitative impact study.( )
The Standard Valuation Law Interest Rate Modernization Work Group submitted comments to the NAIC’s Life Actuarial Task Force (LATF) on its “VM-22: Maximum Valuation Interest Rates for Income Annuities” exposure draft.( )
The Non-Guaranteed Elements Work Group submitted comments to the New York state Department of Financial Services on Proposed 11 NYCRR 48 (Insurance Regulation 210) on life insurance and annuity non-guaranteed elements.( )
The Academy has been the technical architect behind principle-based reserving (PBR), helping to shape PBR into the valuation standard for life insurance issued after Jan. 1, 2017, in the 46 states that have passed standard valuation PBR-enabling legislation. PBR uses risk management techniques to capture an individual insurer’s unique risks underlying its life insurance business more accurately than the pre-existing requirements based on prescribed, static methods and assumptions. The Academy has assembled materials to assist actuaries and regulators as the United States moves into the implementation phase of PBR for life insurance. Read more here.( )
Nancy Bennett, Senior Life Practice Council Fellow, and Rich Owens, member of the Academy C1 Work Group, presented an update on portfolio adjustments to the C1 factors for corporate bonds to the NAIC Investment Risk-based Capital Working Group.( )
Mary Bahna-Nolan, chairperson of the Joint Academy Actuaries Life Experience Committee and SOA Preferred Mortality Oversight Group, presented an update on the new joint initiative of the Academy and the SOA in formulating a work group to address a LATF request for information on accelerated underwriting mortality under VM-20. She also presented an update on guaranteed and simplified issue and preneed mortality tables.( )
John Miller and Chris Olechowski, co-chairs of the Annuity Reserves Work Group, provided a non-variable annuity PBR update to LATF’s VM-22 Subgroup.( )
Tricia Matson, chair of the Longevity Risk Task Force, gave an update to LATF on the task force’s work, including creating a methodology for recognizing longevity risk in statutory reserves and risk-based capital (RBC), and reviewing regulatory and company approaches to longevity risk.( )