Description: Living benefits (GLWBs) in fixed index annuity products are typically accounted for under SOP03-1 under current GAAP guidance. LDTI requires companies to classify these riders as Market Risk Benefit (MRB). This webcast focuses on challenges and considerations of the MRB implementation. Industry practices of the reserving approach will be shared during this webcast, as well as hedging and pricing implications.

Description: If you're intrigued by the impact of recent interest changes or updates about the Principle Based Reserves ASOP 22 Statements of Actuarial Opinions Based on Asset Adequacy Analysis for Life Insurance, Annuity or Health Insurance Reserves and Other Liabilities, then this webcast discussion featuring three expert speakers will grab your attention. Join us for the annual Year-End U.S. Statutory Financial Reporting Considerations webcast and discover more about cash flow testing, as well as potential changes to statutory financial reporting due to climate change. This popular webcast will be taking place December 14, so don't miss out on the latest considerations from our important speakers.

Description: Join us for this popular annual webcast covering the latest considerations for the year's U.S. statutory financial reporting work. Get ready to hear from three expert speakers, who will discuss cash flow testing and this year’s New York and California holiday letters, the impact of recent interest rate changes including treatment of negative IMR, potential changes to statutory financial reporting due to climate change, and updates regarding Principle Based Reserves.

Description: 2021 Life Meeting - Session 7D: Emerging Trends in Lapse and Mortality for Life Products 9.1.21 Recording

Description: Back by popular demand, it is that time of year for this well-liked annual webcast. Get ready to hear from three expert speakers, who will be covering the latest considerations for the year's U.S. statutory financial reporting work. 2021 has proven to have been quite remarkable, providing many important topics to be discussed.

Description: Most insurers operate in a multi-GAAP world: Many U.S. insurers are regulated on a statutory/risk-basec capital (RBC) basis, report to markets under U.S. GAAP, pay taxes on a tax basis of accounting, and manage their business internally on an economic or other basis. In addition, many have overseas entities exposed to even more reporting bases. Reporting requirements are ever increasing and convergence of frameworks is not a reality in most parts of the world.Learn about a multi-GAAP framework to gain a bottom-up understanding of the differences in reserves and other balance sheet and income statement line items across reporting bases, both now and for future projections/plans. Using such an approach enhances insight into the valuation of the business, removes inconsistencies and results in operational efficiencies in the valuation process. At the conclusion of the session, you will learn technical concepts behind the Multi-GAAP framework and some practical ways to design and implement it.

Description: With long duration targeted improvements in the U.S., and IFRS 17 in other countries, the insurance industry is currently undergoing the adoption of two of the most significant accounting changes in recent history. While the scale of these specific events are infrequent, change is the norm in the world of insurance and life of an actuary. We live in a dynamic environment that will continue to bring challenges in how companies make decisions in order maximize their value and return on capital. Capital management requires an ability for insurance companies to take corporate actions and understand the impact this will have on both the current and future available capital. Being able to make optimal decisions when the goal posts are subject to frequent and material shifts in accounting regulation is a difficult process. It requires holistic consideration of all tools available to manage capital and how KPIs can shift in their measurement under new regimes. By attending the session, you will: Discuss the challenges that companies have in managing capital in an ever evolving environment, what steps they have taken in managing the current scope of accounting change, and how they can be prepared for adjustments in the future.

Description: In this session, the presenters will discuss implementation challenges with US GAAP Long Duration Targeted Improvements (LDTI) for life and annuity products, and methods and changes to actuarial models their organizations use to overcome the challenges. Presenters will specifically discuss the following topics: The current GAAP reporting framework can create challenges with transparency for annuity insurers. Many annuity insurers report on adjusted earning measures in addition to US GAAP, believing the adjusted measures more accurately reflect earnings. Using a variable annuity framework, presenters will discuss key differences between GAAP and adjusted earnings measures, key challenges and their solutions for LDTI implementation, and the potential for LDTI to reduce the need for adjusted earnings measures and increase transparency. For FAS 60 based life products, insurers need to update and modernize the assumption setting process. Presenters will cover methods and the decision process whether to use existing data or new experience studies to review product experience and set assumptions. There is a lack of clarity and guidance for development and implementation of LDTI in a reinsurance framework. For reinsured life products, LDTI guidance is clear on the direct side of the financial statements, but the guidance is less clear on reinsurance ceded values. Presenters will discuss methods and changes to actuarial financial models that are needed in order to ensure the direct and ceded values are consistent.

Description: At the conclusion of the first part, attendees will be able to describe sources of reserve redundancy for products under Principle Based Reserve (PBR) and products under Commissioners' Annuity Reserve Valuation Method (CARVM). Such products include Term Life, Whole Life, Universal Life, and Fixed Annuity with and without rider. We will also review sources of capital redundancy from the C-1 factor under Risk-Based Capital (RBC) and assets such as Unrated Asset Credit Fund can have high C-1 factor even if its risks are limited. At the conclusion of the second part, the attendees will learn about potential Reserve Relief reinsurance solutions. Such solutions can provide Reserve Relief for annuity and term life businesses, as well as potential innovative asset-side solutions. Asset managers can structure assets that the C-1 factor aligned with the corresponding risk.

Description: Statutory and GAAP metrics are useful for regulators, investors, and other external parties who require a consistent basis for viewing snapshots of companies at a point in time, however, their uses are more limited for managers who are tasked with making strategic decisions. Many insurers are turning to internally developed metrics such as value of new business (VNB) for better profitability insights at the point of sale and to understand how new business profitability changes over time. By leveraging existing models and reporting processes, insurers can reduce the additional effort involved, applying VNB toward applications such as pricing, capital allocation, and risk management. Discuss key considerations for developing and using VNB. Begin with a brief overview of VNB, including how VNB addresses specific shortcomings of Stat and GAAP. Next, discuss applications of VNB for life and annuity business and conclude with some implementation case studies.