Description: The OCI-Solution of IASB’s IFRS 4 Phase II requires that interest expense for the Profit and Loss (P&L) calculation be based on a yield curve instead of a flat rate locked-in at policy issue. The article has a discussion of analysis of the impact from locking in the yield curve on the IFRS 4 profit pattern as well as general conclusions reached.

Description: This article provides illustrations of an approach to presentation of income and expenses that may be applied to long duration contracts, i.e., those that are measured by the building blocks approach for the emerging new standard on insurance contracts.

Description: Feature article discussing the changes IFRS 4 Phase II will have on reinsurance contracts.

Description: Review of modeling of impact of proposed GAAP changes and commentary on preparedness based on company survey.

Description: Description of results from a survey of 35 insurance companies on the impact of proposed principle-based reserves for life insurance products.

Description: Actuaries are accustomed to considering how much conservatism is appropriate in their estimates, whether made for pricing or for mea- surement of liabilities. In the proposals for a new standard on accounting for insurance contracts, this conservatism is referred to by the International Accounting Standards Board IASB and the Financial Accounting Standard Board FASB of the United States as the risk adjustment.

Description: Update on statutory Valuation reserves and required surplus for variable annuities with living benefit guarantees

Description: Embedded Risk in Settlement Options on Older Life and Annuity Contracts

Description: This article provides an overview of the impact of the revisions to the Standard Valuation Law adopted by the NAIC in 2009 on accident and health insurance.

Description: The selection of the economic capital calculation approach becomes more of a modeling decision. Now let us pause here and think about the arbitrage-free assumption at the beginning. At any time, there can be only one price on any asset. If the company considers the price calculated above as the fair price for its products, then it must hold true that the same price has to be arrived at if the company uses a real-world pricing approach instead of a risk-neutral approach. This gives us a very good basis to calibrate the appro- priate economic capital.