Resources
Regulatory Updates
2025 New York Special Considerations Letter
Bermuda Regulatory Environment
The Bermuda Monetary Authority's consultation paper outlines proposed enhancements to the regulatory framework for commercial insurers, particularly targeting technical provisions, the Bermuda Solvency Capital Requirement (BSCR) computation, and long-term entity fees. Key proposals include changes to the risk margin calculation, adjustments to the Scenario-Based Approach (SBA) for better risk management, and revisions to BSCR parameters to better capture insurer risk profiles. Additionally, the BMA seeks to align fees for long-term insurers with those of property and casualty insurers to support effective supervision.
AG53
All eyes on assets in life insurance is an article that explores the evolving asset management trends in U.S. life insurance, focusing on private credit, structured assets, and increased allocations to illiquid investments like private equity and infrastructure. It discusses the regulatory developments surrounding these asset classes, including updates to risk-based capital rules, the modeling of collateralized loan obligations (CLOs), and new definitions for bonds starting in 2025. These changes aim to improve transparency and risk assessment of complex investments held by life insurers.
IFRS Insurance Contracts Home Page: Presents the findings on a study of insurance contracts.
Principle-based Reserves (PBR)
PBR Corner: Consists of a collection of tools a small company actuary may find relevant to current topics and issues.
Principle-Based Reserves Simplified Methods
This SOA report discusses the challenges smaller insurance companies face in implementing principle-based reserves (PBR) due to resource constraints. It introduces the Representative Scenarios Method (RSM), a simplified approach that uses a limited number of specially constructed scenarios to approximate full stochastic modeling. This method helps small insurers evaluate the risk profile of products and calculate reserves more efficiently, ensuring regulatory compliance while addressing practical limitations in resource availability.
VM-22
Current state of principle-based reserving for non-variable annuities (VM-22)
This introductory article discusses the current state of principle-based reserving (PBR) for non-variable annuities under the VM-22 framework. It outlines the proposed framework for statutory reserving, which includes the use of stochastic, deterministic, and standard projection reserves, as well as key tests like the Stochastic Exclusion Test. The article also mentions the timeline for implementation, including industry field testing and updates on capital requirements, and highlights the challenges and industry sentiment regarding aligning different capital frameworks for various annuity products.
How Does the Emerging Principle-based Reserving Framework for Non-variable Annuities Compare to Market Risk Benefits Under Long-duration Targeted Improvements?
This article discusses the emerging principle-based reserving (PBR) framework for non-variable annuities and compares it to market risk benefits under the Long-Duration Targeted Improvements (LDTI) framework. It addresses how these two regulatory approaches for calculating reserves differ in their treatment of risks and liabilities. The article emphasizes the need for actuarial professionals to understand both frameworks' impacts on insurance companies' financial reporting and reserve calculations, particularly in light of evolving accounting standards and market conditions.
Illustration Actuary
Illustration Actuary Corner: Includes a variety of resources related to illustration actuary work.
General Resources
Actuarial Modernization on a Shoestring Budget
Discusses how actuarial departments, especially in smaller organizations, can modernize their processes and improve efficiency without significant financial investments. It provides strategies such as focusing on stakeholder needs, optimizing current resources, improving communication, and fostering talent development. The piece emphasizes that even with limited resources, actuarial functions can add significant value by embracing small, incremental improvements.
Mortality by Socioeconomic Category Research – Updated Report
The original research report presents mortality analysis and rate estimates for the United States by year from 1999 through 2018, separately by socioeconomic quintile and decile. This updated research report adds data from 2020 and 2021.
Actuarial Standards Board Boxscore Newsletter
Highlights and reports on the ASB’s work in developing, updating, and promulgating actuarial standards of practice in the United States. Click the link to read past issues back to 2005.