Description: Discussion of progress made at the NAIC Fall National Meeting on amendments to the Standard Valuation Law, the Valuation Manual - particularly with regard to principles-based reserves, and The Academy of Actuaries work on Risk Based Capital re C-e Phase III.

Description: This presentation is a panel discussion, session number 33PD, from the 2002 Valuation Actuary Symposium, held September 19-20 in Lake Buena Vista, FL. The panelists provide an update of the 2002 progress made by the International Accounting Standards Board [IASB] in moving to a type of fair-value reporting as presented in the IASB’s draft statement of position on insurance accounting. The panelists then present arguments supporting and opposing fair-value reporting, including comparison with U.S. GAAP accounting. Discussion from participants is included.

Description: “It’s interesting to note that, given the past year’s reversal of fortunes in the stock markets, all the media rap about heated inquiries around back-dating options has stopped.”

Description: One major feature of the OECD's two-pillar regime is that MNEs would base the calculation of taxes due on book-based financial statements. The article provides a summary of how these rules operate along with suggested actions insurers can take today to prepare for timely compliance.

Description: Since solvency assessment depends on a financial reporting framework, one needs risk metrics for use in financial reporting. The essay argues that conceptually, the cost of capital is the appropriate metric for reserves, while a probability level is the appropriate metric for capital. Then the essay advocates stress testing on specific scenarios as a better practical approach to ORSA.

Description: Since the adoption of FAS 157, there has been much concern about the use of a company's own credit risk in the valuation of liabilities. To fully assess the implications of this requirement, the author argues that more research will be required.

Description: Discusses new thinking in regards to risk margins, in the context of fair value and principle-based reporting.

Description: Update on research projects sponsored by the Financial Reporting Section.

Description: The following Executive Summary is an excerpt from a report by Chris O’Brien entitled, “Market-Consistent Valuations of Life Insurance Business: The U.K. Experience.” The purpose of this article is to explain the new valuation approach, set out the issues with implementation and explain how insurers have addressed these issues.

Description: Certain fair value measurements involving actuarial work may not have been required to conform to FAS 157 until late 2008 or early 2009. The purpose of this article is to discuss those items and propose possible methods for actuaries to consider when performing the necessary valuations, from an actuarial standpoint only.