Description: As the Valuation Manual continues to evolve and PBR standards for additional products are drafted and incorporated, it will become increasingly important for companies to understand where the requirements are consistent across products, as well as how they differ. This session will scan the life (VM-20) and annuity (VM-21, VM-22) PBR standards across the Valuation Manual to compare and contrast key requirements. Attendees will understand where common methods and techniques can be used across products and platforms. Attendees will also be better positioned to consider assumption and margin setting, asset and derivative modeling, and model efficiency techniques for all types of principles-based valuations. Additionally, this session will profile specific challenges that can arise when actuaries use models to project PBR reserves at future dates for internal planning, pricing, and projections across life and annuity businesses.

Description: Presented at May 1996 Spring Meeting. The investment environment has undergone significant change over the last several years through the introduction of many sophisticated investment vehicles. This session provides an update on current challenges encountered by life insurance companies in accounting for this new array of investments. Among the issues covered will be accounting for derivatives, mortgage-backed securities, and other hedging vehicles. The session also includes some of the system and projection modeling challenges encountered as a by-product of investment in these vehicles.