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: Segregated Funds Seminar Illuminates Equity Guarantees Risks by G. Thomas Mitchell from The Financial Reporter, February 2000, Issue No. 41.

Description: VA GMDBs: Contemplating the Impact of the Proposed SOP on GAAP Income by David C. Heavilin and Karen J. Sasveld from The Financial Reporter, December 2001, Issue No. 48.

Description: Article discussing the International Actuarial Association's meeting in November 2008.

Description: Article discussing recent developments in financial reporting research by the Section: 3 new PBA projects, stochastic pricing of embedded options, and comparison of results under IFRS and GAAP.

Description: The September 2014 Issue of the Financial Reporting Section's newsletter, The Financial Reporter

Description: This article starts with the increasing attention that FP&A receives due to the implementation of new financial regimes and emphasizes the collaborative nature of FP&A. It then describes the roles that actuaries play in FP&A, the new demands for actuaries that we are observing, and suggests some best practices that we are seeing across the clients. This article targets to point out the new demands from FP&A on actuaries and provide some advice on how actuaries can do to meet these demands.

Description: Latest development in IFRS 17 including a first look at companies disclosures and financial impacts, as well as a discussion of some of the run time issues that companies face.