Description: This article discusses the adoption of the AICPA Statement of Position SOP 03-1 altering the way earnings emerge under FAS 97 and the impact of the enactment of SOX control requirements.

Description: A discussion of risk based capital for annuities RBC C-3 Phase II

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: A discussion of the Morris Review in the UK: a government-requested review of the actuarial profession in the U.K.

Description: Feature article discussing U.S. and international regulatory developments of interest to actuaries in the financial reporting field.

Description: Column discussing developments in insurance accounting from January - March.

Description: Under non-Aristotelian logic, there are multiple values, or shades of gray. Indeed, there may even be unexpected results from logical combinations, like “both” and “neither.” This article discusses how this insight should be applied to the current debate between formula-driven reserves with limited assumption flexibility and the reserve principles approach. For reserve standards, we do need both actuarial judgment grounded in reserving principles and restrictive formula methods or safe harbors.

Description: Feature article discussing U.S. and international regulatory developments of interest to actuaries in the financial reporting field.

Description: Discussion of the investigation of the Faculty and Institute of Actuaries in the United Kingdom relating to the events surrounding the closure to new business on December 8, 2000 of the UK’s Equitable Life Assurance Society.

Description: This article discusses a number of product variations seen in the market with respect to Universal Life products with secondary death benefit guarantees, factors leading to those designs and considerations regarding the adequacy of reserves that emerge under AXXX formulas. This article also identifies a series of factors that authors believe will make it difficult to quickly and equitably resolve these issues through formula-based changes.