Regulatory Capital Adequacy for Life Insurance Companies: A Comparison of Four Jurisdictions

July 2023

Authors

Ben Leiser, FSA, MAAA
Janine Bender, ASA, MAAA
Brian Kaul

Description

The purpose of this paper is to introduce the concept of capital and key related terms, as well as to compare and contrast four key regulatory capital regimes. Not only is each regime’s methodology explained with key terms defined and formulas provided, but illustrative applications of each approach are provided via an example with a baseline scenario. Comparison among these capital regimes is also provided using this same model with two alternative scenarios.

Materials

Regulatory Capital Adequacy for Life Insurance Companies: A Comparison of Four Jurisdictions 

Comparison of Jurisdictions Tool

Acknowledgments

The researchers acknowledge the support of those without whose efforts this project could not have come to fruition: the volunteers who generously shared their wisdom, insights, advice, guidance, and arm’s-length review of this study prior to publication. Any opinions expressed may not reflect their opinions nor those of their employers. Any errors belong to the authors alone.

Project Oversight Group members:

Ravi Bhandari, FSA, MAAA, CFA, CIA
Nancy Davis, FSA
John Di Meo, FSA, CERA, MAAA
Maambo Mujala, FSA, MAAA
Sean Voien, FSA, CERA, MAAA
At the Society of Actuaries Research Institute:
Doug Chandler, FSA, FCIA, Canadian Retirement Research Actuary
Dale Hall, FSA, CERA, CFA, MAAA, Managing Director of Research

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