2025 SOA Valuation Actuary Meeting: Session 3C: Strategic Insights and Case Study on VM-22 Enhancements-08.18.25-Recording

This session provides a comprehensive overview of the enhancements to the VM-22 principles-based reserving framework. It features a case study on Fixed Indexed Annuities (FIA) with Guaranteed Minimum Withdrawal Benefits (GMWB), providing a step-by-step attribution analysis that transitions from the current statutory reserve to the new VM-22 reserve, highlighting the assumptions or components influencing the results. The session will also take you along on the journey from a software vendor perspective where we’ll highlight specific VM-22 regulatory changes driving software updates over the last few years, ultimately maintaining alignment with VM-20 and VM-21. We will explore the practical implications of the changes arising from GOES, product innovations and the need for optimization.A company perspective on the implementation of VM-22 will be given. This perspective will include a discussion of suggestions and items to consider as companies plan their strategy for implementing VM-22.Participants will gain insights into model implementation challenges through the case study, delve into the practical implications of recent software updates, and receive recommendations and considerations from a company perspective, all of which will prepare them to effectively navigate these regulatory changes.