VM-20 brings long awaited principle-based approaches to the world of statutory life reserves, allowing companies to use their own assumptions and cashflow models when calculating the two modeled reserve components of VM-20, the deterministic reserve and stochastic reserve. Under the NAIC’s new Valuation Manual, many companies are required to transition to VM-20 reserve requirements on new life insurance issues by 2020.
This seminar will cover five main components of VM-20: (1) the formulaic net premium reserve, (2) the modeled deterministic and stochastic reserves, (3) the formulaic deterministic exclusion test, (4) the modeled stochastic exclusion test, and (5) VM-20 models.
The presenters will discuss important VM-20 requirements and other considerations for using cashflow models, including the modeling of non-guaranteed elements, use of model simplifications and approximations, and VM-20 constraints on asset projections related to economic scenarios, starting assets, reinvestments, derivatives programs, spreads, and default costs. VM-20 requirements for prudent estimate assumptions, a key element of VM-20 modeled reserve calculations, will also be covered. Spreadsheet examples on how to calculate credibility, determine margins, and grade from company experience for mortality rates to the applicable industry table will be provided. Spreadsheets will also be used to present examples of the back-end calculations VM-20 requires on projected cashflows to determine the resulting deterministic reserve, stochastic reserve, and stochastic reserve exclusion test. The session will conclude by discussing the VM-20 requirements for reinsurance and aggregation and the implications of two related sections in the new Valuation Manual: VM-G on Governance and VM-31 on the PBR Actuarial Report.
Course materials, consisting of a set of presentation slides and spreadsheet files, will be distributed via email the week before this class. Class participants are encouraged to bring laptops or tablets to dive into the spreadsheet examples along with the presenters.
At the end of this seminar, participants will be familiar with the key VM-20 requirements for modeled reserves and associated exclusion tests, be more knowledgeable about the role cash flow models play in VM-20 and key modeling capabilities for VM-20, and be more informed about the importance of VM-20 prudent estimate assumptions and how they are developed and used in VM-20. Participants will also gain knowledge on how modeled reserves are documented in the VM-31 PBR Actuarial Report and better understand the implications of the VM-G section on governance.
Registration is open to all. PolySystems has specifically designed this seminar to demonstrate how to apply the fundamental concepts of principle-based-reserves to the practical, on-the-job demands of financial reporting. The concentrated syllabus and classroom style atmosphere of this seminar provides an environment in which new students and senior management working as actuaries and other professionals will expand their knowledge and learn from actuaries with broad and deep experience in valuation processes.
Level of Difficulty
The seminar is designed for participants with all levels of experience.
Bill Kelley, ASA is an Actuarial Associate in PolySystems Chicago office working on the development team. Bill has been involved in the development and implementation of PolySystems PBR functionality as well as pricing, modeling, experience study, and GAAP LDTI solutions. Prior to joining PolySystems, Bill worked as a high school physics teacher.
Jason Kehrberg, FSA, MAAA, is a Vice President at PolySystems Chicago office and has over 20 years of experience in the insurance industry. Jason works in PolySystems sales area and monitors regulatory developments in the insurance industry. He is a frequent speaker at industry events. Jason has served on both the Financial Reporting and Technology section councils at the SOA and is the current chairperson of the Academy's Life Valuation Committee.
Fatima Yuan, FSA, MAAA, is a Manager of Actuarial Services in PolySystems Chicago office and has over 25 years of experience in the insurance industry. Fatima has worked in PolySystems client and consulting services department for over 10 years. She has been involved in many client product implementation projects and general client support across all lines of business. More recently, Fatima has been heavily engaged in VM-20 client implementation projects.
Jason E. Kehrberg, FSA, MAAA
William Martin Kelley ASA
Fatima L Yuan FSA,MAAA
|SOA Member||$ 725|
|All Others||$ 1,025|
Methods of Registration
- Paying by Credit Card
Online registration is available through May 29.
- Pay by Check—Please contact SOA Customer Service if you wish to pay via check.
- In Person on Site
If you are unable to register online by May 29, you may register at the SOA registration desk located at the Embassy Suites Chicago Downtown beginning June 4 at 9:30 a.m.
If registering within five business days of the program, please call the Society of Actuaries’ Customer Service Center at +1-888-697-3900 to confirm space availability.
Full payment is required at the time of registration.
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SOA incurs significant expenses prior to an event. To minimize losses, SOA maintains the following refund and cancelation policy:
- Prior to Monday, May 20, you may cancel your registration with a full refund provided, less a $100 administrative fee.
- After Monday, May 20, there will be no refunds provided. You may transfer your registration to another meeting or seminar within one calendar year of the original meeting or seminar registered for. However, you will be responsible for any differences in rates and/or fees.
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To cancel an order, log in to My SOA, choose the item you wish to cancel from your order summary and click the cancellation button. Complete the form to submit your refund request.
Embassy Suites Chicago Downtown
600 North State Street
Chicago, IL 60654
Phone : +1-312-943-3800
Toll-Free Central Reservations Number : 1-800-445-8667
Group room rate (taxes not included):
King Suite $259
Double Suite $279
Cutoff date for group room rate: Tuesday May 14, 2019
Reservations can be made online by following the link below of my calling +1-800-445-8667.
Make your reservations by May 14, reservations made after this deadline are subject to space and rate availability. Please make sure you mention that you are attending the Society of Actuaries Reserves Week. A major credit card is required in order to make a reservation. Reservations may be cancelled without penalty up to 24 hours prior to the date of arrival.
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Why Stay at the Embassy Suites Chicago?
We realize there are many hotel options available and by staying at the Embassy Suites Chicago we offer you the chance to save through the SOA group rate. Staying at the Embassy Suites Chicago also provides the best opportunity to network with your peers and maximizes the quality of your meeting experience.
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Hotel Check-In and Checkout
Check-in time is 4:00 p.m. and checkout time is noon. Those arriving early may check their bags with the bell desk in the hotel lobby.
Set in the heart of downtown Chicago, this hotel is surrendered by shopping and entertainment venues.
Taxi fare from O’Hare International Airport is approximately $50.
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About the Sponsors
The Society of Actuaries (SOA) is the largest global professional actuarial organization. With unmatched research and education, and more than 28,000 of the highest skilled actuarial professionals, we prepare the individuals trusted to drive better business decisions and promote financial security in an ever-changing world.
PolySystems develops and maintains actuarial software solutions for life, health, and annuity insurance products that are used in over 100 companies for financial reporting and modeling requirements, including valuations, projections, experience studies, source of earnings, and most recently, the new FASB regulations pertaining to GAAP LDTI. Our team of experienced actuarial consultants routinely helps PolySystems clients with critical implementation projects including data management and model design, validation, and testing.
PolySystems has been cosponsoring this Reserves Seminar with the SOA for over a decade and is an industry leader in U.S. reserving methods and techniques. PolySystems has 100 actuaries and IT professionals working in Chicago, New Jersey, and South Carolina to meet actuarial software needs at both the product and enterprise level.