Description: The article provides a brief background on the issue of modeling non-guaranteed reinsurance under Life princple-based reserving and explores how temporary solutions are impacting insurers as well as the journey to a long-term solution

Description: This is an update, as of July 2020, on projects in process and those recently completed sponsored by the Financial Reporting Section.

Description: This article describes a simple but powerful tool for use by valuation actuaries and auditors when evaluating current assumptions for use in GAAP net premium reserve methods that require retrospective updating for actual experience and assumption changes. As a supplement, this tool can fill some holes left by existing tools. It produces results that can be compared to materiality thresholds at any level of aggregation, from a single reserve cohort up to the combination of all cohorts for all products subject to retrospective net premium reserve requirements. It can also serve as a benchmarking tool for estimated the possible effects of an assumption change or to help in explaining the effects of an actual assumption change.

Description: Risk adjustment is needed under IFRS 17 to reflect the compensation that a company requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk. Companies are also required to disclose the method and confidence level used for the calculation of the RA. However, IFRS 17 doesn’t specify a method and a confidence level, nor does it provide a list of specific risks that are considered to be non-financial risk. Companies need to define them based on their own preferences or existing practices. This article will introduce available approaches and discuss the confidence level approach with potential consideration stemming from industry preferences and illustrative examples.

Description: The American Academy of Actuaries will present on current initiatives that impact the U.S. statutory reserving methodology for non-variable annuity contracts. In particular, the development of a principle-based reserving framework on non-variable annuity contracts will be discussed, including framework elements, assumptions, and methodology. The session will provide an update on the status of regulatory discussions and the timeline for future changes to reserves. By the end of the session, attendees will understand what changes are being made to non-variable annuity reserves, details underlying existing proposals, and the anticipated timing of such emerging changes. This session is intended to the meet the needs of actuaries focused on annuity reserve calculations, financial reporting, and valuation.

Description: Pension accounting standards continue to evolve across the globe with objectives, methods and assumptions varying, sometimes substantially, from one jurisdiction to the next. The presenters will compare the primary global pension accounting standards (US GAAP and IFRS), review recent developments and address whether or not the current standards adequately serve stakeholders such as plan participants, investors, management and regulators.

Description: These are the 5 product-specific Excel workbooks that amplify the principles that is covers in the International Financial Reporting for Insurers

Description: In this article, we explore key insights from Oliver Wyman's 2020 Life PBR Emerging Practices Survey, which provides a broad industry perspective with more than 50 companies participating representing 95 percent of the individual life market (by written premium). Insights include the impact of PBR on reserves and profitability in addition to emerging practices related to product design, assumption development, and methodology decisions.

Description: Read the May 2020 issue of The Financial Reporter published by the Financial Reporting Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.

Description: VM-22 was first introduced into the Valuation Manual in 2018. A number of changes have been made since its introduction, with more expected on the way. This article compares valuation requirements for income annuities pre- and post-VM-22, discusses technical and implementation implications with regards to VM-22 (including comparison with New York Regulation 213), and considers future revisions.