2024 ValAct Meeting - Session 6D: Navigating the Shift: Implementing VM-22 for Non-VA Business 8.27.24 Recording

The upcoming VM-22 standard promises significant changes for the non-VA life insurance industry, impacting regulatory compliance, risk management, and financial reporting. This presentation equips insurance companies to navigate this crucial transition. We'll delve into key considerations from capital, modeling, and hedging perspectives, providing actionable insights for optimizing your VM-22 implementation strategy. Sub-Topics: Capital Adequacy under VM-22: - Explore how VM-22 will affect risk-based capital (RBC) requirements. - Analyze potential adjustments needed to your capital strategy. - Discuss techniques for optimizing capital allocation under the new framework. Modeling for VM-22 Compliance: - Demystify the best practices for developing a robust VM-22 model. - Discover strategies for leveraging existing models (VM-21, LDTI MRB, AG-33) to streamline the transition. - Highlight crucial considerations and challenges in VM-22 model development and validation. Hedging Strategies in a VM-22 World: - Evaluate the impact of VM-22 on your existing hedging strategies and risk mitigation techniques. - Identify potential changes in your hedging approach needed for VM-22 compliance. - Discuss practical considerations for implementing effective and compliant hedging strategies under the new standard.