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: 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: From a session at the 2000 Valuation Actuary Symposium held in Washington DC, September 14-15, 2000. This session is an overview of FAS 133, accounting for derivatives, and the impact it will have on life companies.

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.

Description: Summarizes the major provisions of the International Accounting Standards Board’s recent exposure draft entitled Insurance Contracts, regarding a full accounting standard for insurance.

Description: Research is a primary mission of the Financial Reporting Section and is the largest use of section dues. This scorecard will keep section members informed about research projects sponsored or co-sponsored by the section.

Description: This article analyzes a fixed premium interest sensitive life contract with the objectives of developing an approach to estimating its market value and assessing various notions of its duration. The results of these analyses have implications for market value accounting of life insurance liabilities and for life company portfolio management.