Description: The Financial Accounting Standards Board (FASB) recently introduced the Target Improvements for Long-Duration insurance Contracts (ASU 2018-12), including creation of the market risk benefits product category. The presenters will review and summarize the FASB target improvements and discuss its impact on variable annuities and fixed indexed annuity in-force management and product development.

Description: In this workshop format session, attendees will discuss the issues encountered when calculating principle-based reserves for life insurance products. At the conclusion of the session, attendees will be able to describe issues encountered when calculating principle-based reserves for life insurance products and discover potential solutions.

Description: Thoughts on the future of financial reporting.

Description: Proposal to the NAIC and state regulators to recalibrate life insurance reserve and capital standards to ensure the life industry successfully withstands the historical low interest rate environment.

Description: Health insurance company assets and liabilities have evolved since the Patient Protection and Affordable Care Act (ACA) was signed into law in March 2010. The ACA fundamentally rearranged how commercial health insurance is funded by integrating federal premium subsidies and pass-throughs together with a marketplace interwoven with transfer payments among stakeholders. The impacts of these programs can be seen in specific accounting items on the balance sheets of health insurance companies over the past 10 years. Their emergence follows three primary trends: (1) balance sheet items tend to be larger and take longer to settle, (2) there are more interactions among items, and (3) the final settlement amounts are more uncertain.

Description: Issued in 2004 with provisions effective in 2006-2009, the United States accounting standard, GASB 45, requires local and state governments to account for their post-retirement medical and life insurance programs on an accrual basis for the first time. This standard is creating new demands for actuarial services. This article is written for the experienced private sector post-retirement medical plan actuaries with a strong FAS 106 background who are now working on GASB 45 valuations. For these actuaries, there are many similarities between a FAS 106 valuation and a GASB 45 valuation, but there are also many differences.

Description: Accounting Standards Update (ASU) 2018-12, commonly referred to as long duration targeted improvements (LDTI), is the most significant GAAP accounting change impacting the life insurance industry in the past 40 years. This article discusses the impact of LDTI on variable annuities (VA) and fixed indexed annuities (FIA) from a product development and in-force management angle. Detailed discussion topics include hedging and ALM, product strategy and development, and pricing. LDTI will cause many VA and FIA writers to re-evaluate their hedging and asset liability management (ALM) strategy following the move to fair value accounting under the new MRB requirement. Stakeholder appetite for accounting volatility and resulting changes to hedging and ALM may trigger changes in product mix and designs. In addition to updating pricing infrastructure to handle the new requirements, pricing actuaries will need to produce analyses to educate stakeholders on the risks and pricing implications of any changes to designs, hedging and ALM.

Description: Implementation of GAAP Targeted Improvements will impact data, reporting, resourcing and governance. This provides an ideal opportunity to rethink some of the data and reporting processes currently in place and how they can be improved to create effective and scalable solutions for the future. With the transition date already behind us for public companies and preparation in motion, we will share insights into how organizations have started to tackle implementing the GAAP Targeted Improvements. The presenters will share insights on data and process challenges and possible solutions, as well as a 'smart compliance' approach to comply with the most valuable aspects of compliance. Resourcing strategies for successful implementation will also be discussed.

Description: The purpose of paper is to outline and illustrate some of the more important differences among the current US and Canadian regulatory capital regimes and the standard formula of the Solvency II framework using a hypothetical term-life insurance portfolio as an example.

Description: The Society of Actuaries are once again offering a seminar that investigates all aspects of life insurance, annuity and long term care product tax compliance. Developed by the Taxation Section, participants will be brought up-to-date on recent Internal Revenue Service (IRS) guidance and learn about the newest tax issues related to product design and administration. Legal, IRS and product development experts will provide vital insights into the challenges of developing and administering products within the requirements of the Internal Revenue Code (IRC), and allow ample opportunities for networking, questions and information exchange.