Description: Actuaries are accustomed to considering how much conservatism is appropriate in their estimates, whether made for pricing or for mea- surement of liabilities. In the proposals for a new standard on accounting for insurance contracts, this conservatism is referred to by the International Accounting Standards Board IASB and the Financial Accounting Standard Board FASB of the United States as the risk adjustment.

Description: A New Perspective on Risk Management: Creating Value by Managing Risk by Francis P. Sabatini and Joseph Weiss from The Financial Reporter, December 2001, Issue No. 48.

Description: The Life Risk Based Capital Working Group of the NAIC asked for a recommended capital standard from the American Academy of Actuaries for variable annuity contracts with guarantees. In response, the Life Capital Adequacy Subcommittee’s C-3 Work Group the Work Group, chaired by Bob Brown, formulated an approach, which has been dubbed RBC C-3 Phase II.

Description: The 2008 global financial crisis highlighted the costs of supporting systemically important financial institutions (SIFIs) as well as the linkages both between institutions as well as across countries. The G 20 tasked the Financial Stability Board (FSB) along with international regulatory associations such as the Basel Committee on Banking Supervision (BCBS), International Association of Insurance Supervisors (IAIS) and the International Organisation of Securities Commissions (IOSCO) to evolve frameworks for supervision of such SIFIs.

Description: This article examines the central formulas for Solvency II Solvency Capital Requirement (SCR) and core life authorized control level risk-based capital (ACL RBC) and looks at their underlying assumptions.