Market Risk Benefits (MRBs) are a new classification under ASU 2018-12. The presenters will focus on some the difficulties valuation actuaries may have applying this to fixed indexed annuities. They will give an overview and consider contracts without sufficient and explicit rider charges to pay for the benefits. How will the host adjustment be handled in practice? Other topics will include difficulties with retrospective transition, attribution requirements and projecting future credits in a risk neutral environment. This session will meet the needs of valuation actuaries responsible for implementing market risk benefits on fixed indexed annuities. At the conclusion of the session, attendees will be able to: • Identify typical challenges for implementing market risk benefits on fixed indexed annuities • Demonstrate how both the attributed fee approach and the host adjustment apply to contracts without explicit rider fees • Describe challenges with the retrospective transition requirement • Compare approaches for projecting index credits in a risk neutral environment |