Description: Companies exempt from PBR can benefit by borrowing ideas and lessons learned from companies that perform and operate in a PBR world. The presenters will discuss VM requirements related to governance policies, as well as assumption and margin setting, plus model validations and controls which can benefit smaller insurance companies. Attendees will learn about new actuarial practices and how the PBR methodology and Valuation Manual can influence their work and highlight available resources.

Description: This article intends to provide some background on how and when the state variation issues came about, why these issues present a challenge to the valuation actuary, what seems to be the current practice in dealing with these challenges, and how these issues can be addressed more effectively and efficiently in the future. From Society of Actuaries Financial Reporting Monograph, M-AS99-1.