Academy Statements on Principle-Based Reserving

The Academy has assembled materials to assist actuaries and regulators as the U.S. moves into the implementation phase of PBR for life insurance. Click here to access these materials. Public statements made by the Academy related to PBR are below.

PBA 101 slides describing the history and basics of the principle-based approach to reserves and capital. (August 1, 2010)
Amendment proposals to the VM-20 regarding consistent simplification, scenario reduction, the stochastic exclusion test and supplemental information on the reinvestment spread proposal. (July 1, 2010)
LRWG amendment proposal to the VM-20 regarding margin ratios. (June 1, 2010)
Amendment proposal to the VM-20 to modify requirements for prescribed reinvestment asset spreads. (June 1, 2010)
Life Practice Council letter to the National Association of Insurance Commissioners (NAIC) (EX) Working Group and Life Insurance and Annuities (A) Committee on principles-based valuation and capital approach (PBA) for life insurance. (May 12, 2010)
Review and recommendation for definitions in VM-01. (March 1, 2010)
Amendment to VM-20 by the Life Reserves Work Group with accompanying theoretical foundation. (March 1, 2010)
Joint Academy/SOA update on mortality development and margins. (March 1, 2010)
Life Reserves Work Group report to LHATF in response to an SOA report on PBA. (March 1, 2010)
Life Reserves Work Group report to LHATF on margins in Universal Life with a Secondary Guarantee. (March 1, 2010)
Response from the LRWG on New York Insurance Department’s proposed changes to the use of economic scenarios in VM-20 (December 3, 2009)
Life Reserves Work Group presented on it's findings in its report on Asset Default Costs for VM-20 to LHATF. (December 3, 2009)
Life Practice Note Steering Committee's addendum to the July 2009 C-3 Phase II and Actuarial Guideline XLIII Practice Note, providing guidance relative to additional questions raised by actuaries dealing with the implementation of Actuarial Guideline XLIII since the practice note was first published. (December 1, 2009)
Life Risk Based Capital Working Group slides for the PBR educational session presented by members of the Academy and LHATF. (September 30, 2009)
Life Reserves Work Group's Asset Subgroup presentation on addressing existing asset default costs in principle-based reserves calculations. (September 21, 2009)
Report by the Academy-SOA Valuation Table Team and document (Excel spreadsheet) on reserves for term and ULSG blocks. (September 21, 2009)
Amendment to VM-20 on assumptions requirements for principle-based reserves for life products. (September 1, 2009)
Consistency Work Group amendment to VM-00 clarifying risks to be included in a principle-based valuation. (September 1, 2009)
Valuation Table Team comment letter on concerns expressed by the American Council of Life Insurers to LHATF regarding the 2008 VBT Tables developed by the Valuation Basic Table Team. (July 28, 2009)
LRWG Asset Modeling Subgroup presentation to LHATF on methods for setting prescribed default costs on existing fixed income investments in VM-20. (June 11, 2009)