Emerging Issues

The financial reporting section council has been asked to provide a list of "emerging issues" relevant to the work of an actuary practicing in this area. The council has compiled the following list:

1. IFRS
• Fair Value Measurement
• Financial Instruments (revision of IAS 39)
• Insurance Contracts (phase II)
2. Market Consistent Embedded Value
3. Economic Capital
4. Principle Based Approaches to Reserves and Capital
• US
• International
5. US GAAP
1. Accounting for Variable Annuity Guarantees
2. Purchase Accounting
3. Accounting for Internal Replacements
4. DAC Amortization for Variable Products–modeling of living benefits for DAC model
5. Disclosures
6. Convergence with IFRS
6. Applying Actuarial Guidelines
7. Application of Stochastic Modeling
8. Federal Regulation of Insurance in the US
9. Emerging Issues of interest to Canadian actuaries
• IFRS
• Preparing for the 2011 Canadian effective date (key issue–product classification)
• Phase II
• Capital
• Review and modification of the MCCSR in light of the implementation of IFRS and the evolution capital standards
• Mortality improvement in life & annuity liabilities/capital
• Counterparty risk
• Currency risk
• Pandemic modeling
• Stochastic modeling–largely economic–interest/equity

Thank you for your anticipated assistance.