Public Policy News

The Financial Reporting Committee (FRC) submitted comments to the Financial Accounting Standards Board (FASB) on its proposed accounting standards update, Targeted Improvements to the Accounting for Long-Duration Contracts (Topic 944). (December 14, 2016)
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. (December 11, 2016)
The Academy released Managing the Risks in Cyberspace, an Essential Elements report that explores insurance issues surrounding cyberattacks, including risks from data theft or malicious software. The Essential Elements series is designed to make actuarial analyses of public policy issues clearer to general audiences. (December 9, 2016)
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. (December 9, 2016)
The Financial Reporting Committee released a new white paper on considerations for actuaries in implementing the FASB Short-Duration Contract Disclosures. (December 9, 2016)
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. (December 8, 2016)
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. (December 8, 2016)
The Health Practice Council sent letters to both the U.S. House and Senate on potential adverse consequences of repealing provisions of the Affordable Care Act (ACA) without having a replacement approach in place, and the challenges faced by eliminating the reimbursements to insurers for cost-sharing reduction subsidies. Read the news release. (December 7, 2016)
The ERM/ORSA Committee submitted comments to the NAIC’s Group Solvency Issues (E) Working Group on the Form F Guidance Manual exposure draft. (December 5, 2016)
The Principle-Based Reserves Checklist Subgroup of the Model Governance Work Group released a model governance checklist, which is offered as a resource for practicing life actuaries involved in actuarial model governance. (December 1, 2016)
The Principle-Based Reserves Model Governance Practice Note Subgroup of the Principle-Based Reserves Strategy Subgroup released a draft model governance 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 principle-based reserving (PBR). The deadline for comments is Jan. 2, 2017. (December 1, 2016)
The Academy, in conjunction with three other actuarial organizations, launched the Actuaries Climate Index (ACI) that provides a quarterly measure of changes in extreme events and sea levels to inform actuaries, public policymakers, and the public about climate trends in the U.S. and Canada. Read the news release. (November 30, 2016)
Laurel Kastrup, the chairperson of the Academy’s Health Financial Reporting and Solvency Committee, testified at a U.S. House Subcommittee on Government Operations hearing on the federal long-term care insurance program. (November 30, 2016)
The LTC Criteria Work Group published an issue brief examining the essential criteria that should be used to analyze long-term care (LTC) financing reform proposals. Read the news release. (November 29, 2016)
Academy Senior Life Fellow Nancy Bennett made a presentation to the National Conference of Insurance Legislators (NCOIL) National Meeting that provides an update and background on the implementation of principle-based reserving (PBR). (November 18, 2016)
The Stop Loss Factors Work Group sent a report to the NAIC Health Risk-Based Capital (RBC) Work Group (E) reviewing the RBC formulas currently used for medical excess of loss business.
(November 14, 2016)
The AG 43/C-3 Phase II Work Group submitted comments to the Variable Annuities Issues (E) Working Group on the exposed proposal to revise Actuarial Guideline 43 (AG 43) and C-3 Phase II. (November 14, 2016)
The SVL Interest Rate Modernization Work Group submitted comments on valuation rate buckets to the NAIC's VM-22 (A) Subgroup on its exposure draft on the VM-22 maximum valuation interest rates for income annuities. (November 2, 2016)
The SVL Interest Rate Modernization Work Group submitted comments to the NAIC's VM-22 (A) Subgroup on its exposure draft on the VM-22 maximum valuation interest rates for income annuities.
(November 2, 2016)
The Longevity Risk Task Force gave a presentation to the Financial Stability Oversight Council (FSOC) Nonbank Designations Committee on longevity risk in annuity and life insurance. (November 1, 2016)