Description: The Smaller Insurance Company Section, the Committee on Life Insurance Research and the Product Development Section announce the release of a new report on the impact mortality credibility has on principle-based reserves.

Description: The article investigates the reasons behind non-zero financial implications for fully reinsured businesses within the regulatory frameworks of US GAAP Long Duration Targeted Improvements (LDTI) and International Financial Reporting Standards (IFRS) 17. It helps companies grasp the nuances of these standards, thereby enhancing their risk management strategies, improving regulatory compliance and optimizing their decision-making processes.

Description: The introduction and effective application of US GAAP LDTI have increased the scrutiny of those reviewing the updated financial results. That is because LDTI has resulted in significant changes in actuarial reserving and deferred acquisition cost (DAC) models for long-duration contracts, including significant changes to data, assumptions and required disclosures. In light of the changes, greater reliance has been put on companies’ model risk management (MRM) teams and model validations to assess the conceptual soundness and accuracy of their companies’ actuarial models and to assess that the underlying data and process utilized are suitable and appropriate. This article covers a brief background on model validation, walk through a sample LDTI-focused model validation framework/test plan, then provide insights on common LDTI-related validation observations based on the authors' prior validation experience.

Description: As an addendum to a July 2022 article, this article restates the formulas then presented for a framework to measure the reinsured portion of a direct loss from capping a net premium ratio or flooring a liability. The article corrects a flaw in one of the original formulas and shows, by example, how the framework can be applied to a specific application of reinsurance accounting.

Description: In the fourth quarter of 2022, publicly traded life insurers reported on their financial and operational activities, which included a downturn in income from alternative investments, the continuing impact of COVID, the impact of equity market returns on variable annuity products, and growth trends related to pension risk transfer transactions.

Description: Improve your financial reporting knowledge with this SOA e-course. It will help you understand financial statements and regulatory capital requirements.

Description: Equity-Based Insurance Guarantee Webcast Series

Description: Indexed universal life (IUL) continues to be the most popular universal life (UL) product with sales reaching $1B in Q4 2023, according to LIMRA. There is little long term experience for IUL and many companies value and model IUL just like UL, but there are material potential differences that need to be considered for valuation and projection purposes. Presenters will discuss key risks and differences between IUL and UL relating to policyholder behavior and how to value, project, monitor and manage those risks to avoid repeating misestimates of the past. Presenters will also discuss broader life assumption risks such as mortality and yearly renewable term (YRT) reinsurance risk. Attendees will learn about options on how to potentially address underperforming blocks of IUL and will obtain an improved perspective on the risks of IUL products and the differences versus UL and how to incorporate these differences into their valuation and projection exercises.

Description: This paper is concerned with the fundamental nature of life insurance company earnings. The operation of the policy reserve system as the timing mechanism which determines the incidence of earnings is discussed, and the concept of release from risk is described. From Society of Actuaries Financial Reporting Monograph, M-AS99-1.

Description: The session will use a case study to discuss some of the nuances and general considerations for an MRB, FAS 133 and VOBA balances for a business combination for an fixed index annuity (FIA) contract. The case study will discuss some MRB fair value considerations and followed by FAS 133 fair value techniques.