Noon to 12:10 p.m. 

Welcome and Introduction to the Seminar

12:10 to 1:10 p.m.

External Reviews of PBR: NAIC PBR Reviews

Discussion of reviews that have been done by NAIC staff, California and other states. This includes consideration of AG-51 LTC reviews.

1:10 to 1:30 p.m.

External Reviews of PBR: Reviewing PBR from an Auditor’s Perspective

What auditors are looking for in a PBR review regarding methodologies used, governance controls, experience studies, etc.

1:30 to 1:45 p.m.

Break

1:45 to 2:45 p.m.

Preparing for Regulatory and Auditor PBR Reviews

What companies are typically doing to prepare for PBR reviews by regulators and auditors. 

2:45 to 3:45 p.m.

Modeling Overview and Modeling Governance

This session will cover the requirements around PBR modeling, including specific inputs, projection capabilities, and output formats. Issues around inforce compression, scenario generation, cross-model leveraging, model validation, and practical modeling decisions will also be discussed during the presentation. Included here will be applicability to variable annuities. 

3:45 to 4 p.m.

Break

4 to 5 p.m.

Reserve Change Analysis and Pricing Projections

This session will focus on what can cause changes in reserve levels, as well as discuss methodologies used in pricing projections.

5 to 5:30 p.m.

Questions of the Day’s Topics

Noon to 1 p.m.

Life: Overview and Implementation of VM-20

This session will cover topics such as the calculation of the minimum reserve; examples of the Deterministic Reserve; the Stochastic Reserve; and the Net Premium Reserve; the deterministic and stochastic exclusion tests; recent changes to VM-20; and key issues impacting the implementation of VM-20.

1 to 1:15 p.m.

Break

1:15 to 2:45 p.m.

Mortality Overview: Life

This session will include consideration of aggregation of products in determining mortality rates and credibility percentages and blending into industry tables.

2:45 to 4 p.m.

Additional Liability Assumption Overview

This session will cover the main assumptions necessary for a Term and/or Universal Life with Secondary Guarantees (ULSG) PBR model. Assumptions covered will include lapses, premium persistency, credited rate function, expenses, and taxes; and the assumption governance manual.

4 to 4:15 p.m.

Break

4:15 to 5 p.m.

Reinsurance Overview

This session will include considerations by the ceding company and the reinsurer in projecting reinsurance cash flows and will cover some current reinsurance issues pertaining to PBR that are being addressed by the NAIC.

5 to 5:30 p.m.

Questions of the Day’s Topics

Noon to 1:15 p.m. 

Asset Overview

Includes considerations of choosing inforce assets for PBA testing, assets to be assumed for reinvestments, and use of tables for spreads and default assumptions.

1:15 to 1:30 p.m.

Break

1:30 to 2:30 p.m.

Standard Projection Methodology–Basics & Disclosures

This session will cover the two approaches to calculating the Standard Project Amount—Company-Specific Market Path (CSMP) vs. Conditional Tail Expectation with Prescribed Assumptions (CTEPA).

2:30 to 3:45 p.m.

Standard Projection Prescribed Assumptions and Implementation

This session will focus on implementation considerations for the Standard Project Amount, (e.g., withdrawal cohort delay method, conforming and non-conforming lapses, differences between Guaranteed Actuarial Present Value (GAPV) and actual projections, keeping contracts inforce).

3:45 to 4 p.m.

NY Regulation 213 on PBR

This session will focus on the changes to PBR that will be required for filing in New York.

4 to 4:15 p.m.

Break

4:15-5 p.m.

Sample Reports and Where to find More Information, Next Steps

An overview of the PBR Website, Model Governance Practice Note, Model Governance Checklists, practice notes, ASOPs, PBR Analysis Templates, other sources any Q&As on sources, and Academy templates. This will also include a brief summary of what is coming in future.

5 to 5:30 p.m.

Questions of the Day’s Topics