This panel discussion dives into the NAIC's new principles-based reserving (PBR) requirements for fixed annuities (VM-22) set to be effective January 1, 2026. After a brief overview of the VM-22, this session will focus on practical implementation considerations and adapting cash flow models to the new requirements, tackling sensitivity runs, margin testing, the Stochastic Exclusion Test, and mapping prescribed assumptions for the Standard Projection Amount (SPA) to companies' unique products and features. We will also explore implications of the 3-year transition period, and other topics such as allocating aggregate reserves to the contract level, model efficiency techniques, attribution analysis, process automation, reporting and interpreting results, and projecting VM-22 reserves for forecasting, pricing and risk management. Attendees will gain actionable tools for VM-22 compliance, strategies for model adaptation, and insights to optimize the reserving process for business success.
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