2023 ImpACT Conference - Session 7G: The Transition to a New NAIC Economic Scenario Generator 10.24.23 Recording

The NAIC is attempting to transition to a new economic scenario generator. The process has been ongoing for several years and many interesting challenges have emerged along the way. Get an overview of where this transition is at and what comparatives have been established between the existing and proposed economic scenario generators through scenario releases and field testing. A significant amount of discussion and investigation has been done concerning acceptance testing for interest rates, equities and corporate bond returns. Find out more about the role of acceptance criteria and review specific examples of acceptance criteria that are emerging as best practices given the extremes of the past 20 years. Learn about the existing and proposed NAIC economic scenario generators, methods for comparing them, what are seen as the pros and cons of each, and how acceptance criteria are used to guide a selection of an economic scenario generator. Discover how acceptance criteria is created from financial data, including important percentile benchmarks. TRACK: ERM/ Capital Risk/ Climate Change;Investments/ ALM