Description: Since insurance contract liabilities are uncertain in amount, an estimate is required. And under most accounting frameworks, the estimate of an uncertain amount should contain some sort of margin for uncertainty. This paper provides a mathematical connection between that margin and the market price of risk as measured by the cost of capital. The connection makes use of the theory of utility and an exponential utility curve.

Description: 1993 SOA Meeting, Quebec. This session addressed FASB activities, American Academy of Actuaries response, and alternative approaches to fair value reporting. Topics covered: 1. The new FASB pronouncement, SFAS 115, Accounting for Certain Investments in Debt and Equity Securities. 2. Activities of the American Academy of Actuaries' COLIFR subcommittee on FASB and AICPA issues. 3. General principles in the area of fair-value accounting. 4. Potential methods for evaluating liabilities on a fair-value basis. 5. Developments in the area of fair-value accounting.

Description: This SOA report identifies methodologies currently in use by life insurers as well as potential new strategies to manage balance sheet and income volatility risk associated with fair value and related accounting

Description: Presented at June 1996 Spring Meeting. This session presents an overview of the SOA cosponsored conference on fair value of insurance liabilities, including a comparison of some of the methods presented. The session also provides a status update of recent industry and professional activities and what the future may hold for the use of fair value of insurance liabilities in insurance company financial statements.

Description: This session at the SOA 1998 Maui I Spring Meeting looks at the fair value of liabilities focusing on financial measurement, FASB 115, implications of various methods and a status update. Case studies comparing statutory, GAAP and fair value results are discussed.

Description: SFAS 157, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value and expands disclosures. This article briefly summarizes SFAS 157 and then turns to the computation of a fair value liability and the use of risk margins, with some expanded discussion of the cost of capital method for establishing the risk margin.

Description: Activity surrounding the principle-based approach to statutory reserves and minimum regulatory capital is gaining momentum. This article will allow those readers who are not as close to this initiative to quickly become familiar with the landscape of the movement and where it stands today.

Description: Feature article discussing the use of fair value or market consistent measurement for the valuation of insurance liabilities.

Description: Read the September 2017 issue of The Financial Reporter published by the Financial Reporting Section.

Description: Update on Financial Reporting Council activities.