Description: An overview of how the VM-31 requirements for documenting PBR approaches and assumptions can/should reflect the Actuarial Standard of Practice on Modeling, ASOP No. 56

Description: Focusing on the topic of Principle Based Reserves (PBR), the SOA offers on-demand education. The PBR series consists of ten micro-lessons providing foundational education on PBR and requirements of VM-20.

Description: Initiated by the Financial Reporting Section, this paper explores rising interest rates. Following this path, the paper will look at implications of interest rate changes for the life insurance industry, current stress testing practices, and how a risk manager can proactively prepare for an uncertain future. A paper published in 2014 focused on why rates could stay low, and some aspects of this paper are similar (e.g., description of insurance products). This paper also uses a sample model office to help practitioners look at their own exposures. It includes typical interest-sensitive insurance products and how they might perform across various scenarios, as well as a survey to establish current practices for how insurers are testing interest rate risk currently.

Description: The second part of a roundtable discussion on principals-based approach [PBA] and the life insurance industry, in this part discussing mortality experience studies. The first part appeared in the August/September 2008 issue of The Actuary.

Description: The SOA Research Institute engaged Milliman to perform a study examining life insurer practices on accelerated underwriting and how COVID-19 has impacted them. This effort included a separate outreach to actuaries working for twelve different state insurance departments. At the time of this report, three responses to our regulatory survey had been received. Therefore, the results of the three-question survey are discussed in broad terms, rather than using numerical measurements.

Description: This report examines options for analyzing periodic changes in VM-20 reserve amounts.

Description: Non-guaranteed elements are parameters of life insurance and annuity polices that are not fixed when the policy is issued but may be changed from time to time by the insurance company.

Description: Twelve companies field tested the proposed principle-based valuation manual for four different product lines: term life, universal life, whole life and deferred annuity. This report compares the reserves and C3 capital amounts under PBA versus current formulaic standard and discusses practical aspects in applying the proposed methodology.