Description: Living benefits (GLWBs) in fixed index annuity products are typically accounted for under SOP03-1 under current GAAP guidance. LDTI requires companies to classify these riders as Market Risk Benefit (MRB). This webcast focuses on challenges and considerations of the MRB implementation. Industry practices of the reserving approach will be shared during this webcast, as well as hedging and pricing implications.

Description: 2021 Life Meeting - Session 1C: Earnings Pressure Impact on Annuity Product Development and the Insurance-Linked Securities Market

Description: 2021 Life Meeting - Session 8E: Insurance M&A Valuation Methodologies and Considerations 9.1.21 Recording

Description: Reinsurance can be used as a tool to improve profitability and competitiveness on in force and new business for companies. Emerging reinsurance solutions will help organizations better manage their capital in different ways. During this webcast, the following solutions will be covered: Use of reinsurance to manage and improve capital and profitability Turning spread-based business into fee-based business Strategic use of affiliate and sidecar reinsurance

Description: Accounting Standards Update (ASU) 2018-12, commonly referred to as long duration targeted improvements (LDTI), is the most significant GAAP accounting change impacting the life insurance industry in the past 40 years. This article discusses the impact of LDTI on variable annuities (VA) and fixed indexed annuities (FIA) from a product development and in-force management angle. Detailed discussion topics include hedging and ALM, product strategy and development, and pricing. LDTI will cause many VA and FIA writers to re-evaluate their hedging and asset liability management (ALM) strategy following the move to fair value accounting under the new MRB requirement. Stakeholder appetite for accounting volatility and resulting changes to hedging and ALM may trigger changes in product mix and designs. In addition to updating pricing infrastructure to handle the new requirements, pricing actuaries will need to produce analyses to educate stakeholders on the risks and pricing implications of any changes to designs, hedging and ALM.

Description: Explore real-life experiences implementing LDTI for traditional life and annuity products. Learn about strategies that worked well and pitfalls to avoid in the future. Topics include data and assumption management, building disclosures for attribution analyses and roll-forwards, discount rates, implementing new DAC calculations, reinsurance accounting methods, and risk-neutral ESGs and processes to calculate Market Risk Benefits.

Description: The annuity market has been declining while the Registered Index Linked Annuity (RILA) market has been expanding. Discover why the market is growing along with key features and considerations for the product from an actuarial perspective.

Description: In this article, we collected data from the companies’ roll-forward disclosures related to calendar years 2021 and 2022 on Market Risk Benefit and shared a high-level summary of the Market Risk Benefit volatility that a focus group of companies incurred and summarized the most common ways to mitigate volatility.

Description: 2021 Life Meeting - Session 8F: Smaller Insurance Company Chief Actuary and Appointed Actuary Forum 9.1.21 Recording

Description: This article examines the changes in U.S. regulatory reserve and risk-based capital requirements that will significantly impact the insurance industry and practicing actuaries. It summarizes activity related to principles-based reserves and risk-based capital initiatives during 2005.