Impact of VM-20 on Life Insurance Product Development

July 2017

The Society of Actuaries’ Product Development Section, Reinsurance Section, Smaller Insurance Company Section and the Committee on Life Insurance Research announce the release of a new study on the impact of VM-20 on life insurance product development. Performed by a Milliman team, the research is composed of two phases. The reports for both phases are now available.

Phase 1 Report uses case studies for term and universal life products to examine the changes to the product development process as a result of VM-20. The case studies are intended to illustrate profitability changes from current statutory reserving methods for hypothetical products and identify issues and considerations for product development actuaries.

Phase 2 Report expands on the first phase case studies and includes additional case studies focused on smaller insurers and the impact of reinsurance. Phase 2 also discusses the industry’s preparedness for pricing under VM-20 and identifies pricing and product design issues through interviews and discussions with product development actuaries.




Impact of VM-20 on Life Insurance Product Development-Phase 1

Phase 1 Report Data for graphs

Impact of VM-20 on Life Insurance Product Development-Phase 2

Phase 2 Report Data for graphs



Thank You

The Sponsors would like to thank the companies that participated in the study and the following individuals that served on the Project Oversight Group:

Rebecca Scott – Chair
Donna Megregian – Vice Chair
Erik Anderson
Nanna Cho
John Di Meo
Illya Golanek
Edward Hui
Russ Kolmin
Tracy Lark
Kelly Rabin
Mark Rowley
Lloyd Spencer
Ronora Stryker, SOA Research Actuary
Jan Schuh, SOA Sr. Research Administrator


Questions Or Comments?

If you have questions or comments on this research, please contact Ronora Stryker, SOA Research Actuary, at