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.( )
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.
Two Academy practice councils made presentations at the NAIC’s Center for Insurance Policy and Research Summit. Dave Neve, chairperson of the Life Financial Soundness Risk Management Committee, made a presentation on issues related to internal modeling for PBR at the summit on behalf of the Life Practice Council. Academy Vice President Mike Angelina, representing the Casualty Practice Council, presented actuarial perspectives on both property/casualty insurance issues and the effects of current liability reporting.( )
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.”
Casualty VP Mike Angelina presented the NAIC’s Casualty Actuarial & Statistical Task Force at the NAIC’s National Summer Meeting with a summary of the Casualty Practice Council’s application process for non-CAS members to sign NAIC P/C Opinions.( )
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.
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:
· 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( )
The Pension Committee published an issue brief addressing the Pension Benefit Guaranty Corporation’s deficit in its single-employer program. The issue brief concludes that the agency’s methods and assumptions have produced a reasonable representation of the PBGC single-employer program’s current obligation and deficit. The issue brief explains that while policymakers should explore new sources of income to address the deficit, immediate premium increases on plan sponsors are unnecessary and potentially counterproductive. Read the news release.( )
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.
The Social Security Committee updated its annual issue brief on the 2013 Social Security Trustees Report that outlined the trust fund’s current financial status, long-range estimates of the program’s solvency, and the need to reform the program to ensure sustainable solvency.( )
The Minimum Value Practice Note Work Group released a practice note exposure draft related to determinations of minimum value (MV) and actuarial value (AV) under the Affordable Care Act for a 45-day exposure period. Comments on Minimum Value and Actuarial Value Determinations Under the Affordable Care Act should be submitted by September 30.( )
The Pension Committee submitted its views to the Department of Labor regarding the agency’s proposal to add lifetime-income information to pension benefit statements. The committee commended the DOL for requiring lifetime income disclosures under section 105 of the Employee Retirement Income Security Act of 1974 and offered comments on specific topics, including assumed rates of return, drawdown illustrations, and projected retirement ages.( )
Reforms introduced by the Affordable Care Act (ACA) may create uncertainty for health insurance issuers. What does this uncertainty mean for your future financial statements, especially given increased ACA requirements for actuarial estimates in financial reporting? Register for the Aug. 22 webinar to learn about the financial reporting implications of several key provisions of the ACA—premium stabilization programs, new taxes and fees, advanced payments, and existing actuarial liabilities.( )
Large Group Medical Business Practice Note Work Group released an updated practice note on large group medical business.( )
Senior Pension Fellow Don Fuerst responded by letter to additional questions asked by Chairman Johnson of the House Ways and Means Subcommittee on Social Security. The letter, related to Mr. Fuerst’s May 23 testimony to the subcommittee, provided further analysis on changing the benefit formula of Social Security, and modifying the program’s early and full retirement ages.( )
The Enterprise Risk Management Committee released the final version of its practice note, “Insurance Enterprise Risk Management Practices,” which discusses ERM practices within the insurance industry and concepts such as risk culture, risk organization, and risk governance.
Senior Life Fellow Nancy Bennett presented on annuities regulation at the National Conference of Insurance Legislators Summer Meeting.( )
Casualty VP Mike Angelina presented an actuarial perspective on the future of the National Flood Insurance Program following the 2012 passage of the Biggert-Waters Flood Insurance Reform Act to state legislators at the National Conference of Insurance Legislators Summer Meeting.( )