Description: The NAIC is working with state insurance departments to replace the existing rules-based valuation laws with principle-based valuation laws. On the GAAP front, both the International Accounting Standards Board, which sets GAAP accounting guidance for many countries outside the United States, and the Financial Accounting Standards Board, which promulgates GAAP guidance in the United States, are moving toward a “current estimate” standard of valuation, which often results in a fair value or similar measurement basis. This article reviews the IASB’s discussion paper on insurance valuation and the American Academy of Actuaries’ response to it.

Description: The article described two methods for calculating the benefit ratio described in AICPA Standard of Practice SOP 03-1. Method 1 calculates the benefit ratio as the quotient of the expectation of A and the expectation of B where A is benefits and B is assessments. Method 2 calculates the benefit ratio as the expectation of the quotient of A and B.

Description: Full version of The Financial Reporter, Issue No. 67, December 2006.

Description: A discussion of some of the challenges the insurance industry will face as we move towards fair value and a comparison of the pros and cons of rules based vs. principles based reserves.

Description: Full version of The Financial Reporter, Issue No. 65, June 2006.

Description: Full version of The Financial Reporter, Issue No. 64, March 2006.

Description: Full version of The Financial Reporter, Issue No. 71, December 2007.

Description: As council members, we have a fiduciary duty to use the section’s funds to benefit our section’s members. By creating an inviting “target” out of our funds, we create a situation that isn’t prudent from a risk management standpoint.

Description: Full version of The Financial Reporter, Issue No. 61, June 2005.

Description: Full version of The Financial Reporter, Issue No. 66, September 2006.