2025 SOA Valuation Actuary Meeting: Session 1G: Unpacking the New Asset Adequacy Testing and Offshore Reinsurance Actuarial Guideline-08.18.25-Recording

This panel discussion, led by volunteers from the American Academy of Actuaries' Life Practice Council, will dive into the new actuarial guideline on asset adequacy testing and offshore reinsurance, expected to take effect for year-end 2025. Attendees will benefit from having a working knowledge of cash flow testing and familiarity with reinsurance for asset-intensive products. Following a brief overview of asset adequacy testing, the session will explore the guideline's motivations, scope, and key requirements, using case studies to illustrate what the guideline's testing could look like across a range of reinsurance scenarios. Panelists will examine differences between the guideline's mandatory and alternative testing runs, explore alternative testing methods, and highlight practical challenges actuaries may encounter. Attendees will gain a clearer understanding of the guideline and its application, enhanced ability to navigate its complexities, and actionable strategies for integrating results into a single actuarial opinion.