Research Projects – Life Insurance
The Society of Actuaries' Committee on Life Insurance Research and Financial Reporting Section are pleased to make available the following report examining the Z–Factor methodology being considered by the American Academy of Actuaries' Life Reserves Work Group (LRWG) for measuring the margins for uncertainty utilized in estimating reserves under a principles–based approach. Performed by John Roeger and Yiping Yang of Milliman, the research addresses the following questions:
The results of this research will be used by the LRWG in finalizing its recommendations on principles–based reserving.
The Committee on Life Insurance Research and the Financial Reporting Section Council would like to thank the following individuals that served on the Project Oversight Group:
If you have any questions or comments regarding this report, please direct them to Ronora Stryker, SOA Research Actuary.