Description: A focus on the capital markets perspective and some of the products dealers offer to hedge and help mitigate capital costs and tail exposure risks. From The Actuary Magazine, April/May 2005

Description: The article provides an overview of the federal tax treatment of long-term care insurance contracts, including a brief history of the tax treatment of long-term care insurance, the requirements that must be satisfied in order to be treated as qualified long-term care insurance under the Internal Revenue Code, and a brief discussion of qualified long-term care combination products and chronic and terminal illness accelerated death benefits offered under life insurance contracts.

Description: This article demonstrates that the alternative method of adjusting DAC amortization for actual experience fails to serve its purpose if amortization is based on amounts in force at the end of a reporting period. In that situation, the method would increase the amortization rate for excess terminations. Applying that increased rate to a lower basis, however, does not reliably reduce the unamortized DAC balance as required.

Description: The article addresses treatment of products with indirect participating features (e.g. declared credited rates) under IFRS 17. Some of the questions that are answered include classification, stochastic modeling requirements, application of the illiquidity premium, methods to systematically allocate between P&L and OCI, and use of locked in discount rates for CSM purposes.

Description: This is the final article in a five-part series about accounting for reinsurance under GAAP Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). It looks at some concerns that arise when new reinsurance is purchased to cover previously-issued contracts. The article describes what formal guidance is available. Where that guidance leaves off, the article presents practical solutions to achieving performance objectives.

Description: This article provides an update, as of October 2023, on Financial Reporting Section research projects in process and those recently completed.

Description: Sustainable operations under changes in accounting principles and solvency standards

Description: Actuarial Process Optimization is a framework for using technology to support the actuary of the future. In this article, we discuss the capabilities of new technologies and explore examples where they can be used to aid with providing strategic business direction, optimizing skillsets and use of technology, and maintaining governance, control, and risk frameworks.

Description: T3: TAXING TIMES TIDBITS

Description: GAAP's elimination of gross profit as a basis for amortization of deferred acquisition costs enables the accounting for reinsurance of universal life contracts to better reflect the economic protection provided by reinsurance. This article takes a fresh look at the standards of accounting for universal life contracts and for reinsurance, then puts them together to find the techniques that best account for that protection.