Description: Feature article discussing how insurers have reflected volatility in asset return assumptions when determining capital requirements, but have largely disregarded the impact of mortality volatility on their liability assumptions when performing stochastic analysis.

Description: This article views the principle-based methodologies from a future perspective and identifies some inconsistencies in the proposed approach, while presenting some simpler and more consistent alternatives.

Description: Medicaid and the ACA

Description: In order to better develop skill in predictive analytics, the author suggests looking to professionals who design innovative predictive models and, more importantly, find effective ways to communicate their findings to a large audience.

Description: Update on statutory Valuation reserves and required surplus for variable annuities with living benefit guarantees

Description: This article discusses a number of product variations seen in the market with respect to Universal Life products with secondary death benefit guarantees, factors leading to those designs and considerations regarding the adequacy of reserves that emerge under AXXX formulas. This article also identifies a series of factors that authors believe will make it difficult to quickly and equitably resolve these issues through formula-based changes.

Description: Embedded Risk in Settlement Options on Older Life and Annuity Contracts

Description: This article examines the central formulas for Solvency II Solvency Capital Requirement (SCR) and core life authorized control level risk-based capital (ACL RBC) and looks at their underlying assumptions.

Description: If you’ve been reading my columns for a while, you have no doubt recognized that I tend to be consis- tently optimistic when it comes to the insurance contracts project meeting deadlines. I am constantly disappointed as the International Accounting Standards Board IASB and Financial Accounting Standards Board FASB fail to meet their own deadlines for producing exposure drafts or other papers. But this time is different.

Description: The article focuses on GAAP accounting for indexed products with riders; specifically, how rider charges should be addressed in FAS 133 reserves, estimated gross profits for FAS 97, and company financial statements.