Academy Senior Casualty Fellow Rich Gibson remotely presented an overview and updates on the Actuaries Climate Index and the Actuaries Climate Risk Index at the Casualty Actuarial Society’s Virtual Spring Meeting.

The Casualty Practice Council sent a comment letter to the U.S. House of Representatives Financial Services Committee on a proposed Pandemic Risk Reinsurance Program. Read the Academy news release.

The Committee on Property and Liability Financial Reporting submitted comments to the National Association of Insurance Commissioners Blanks Working Group, regarding proposed instructions for the 2020 P&C Statement of Actuarial Opinion.

On May 11, 2020, Steve Jackson, the Academy’s Assistant Director for Research, presented on the Actuaries Climate Risk Index (ACRI) to the Actuarial Colloquium, a virtual conference sponsored by the International Actuarial Association and the French Institute of Actuaries. The ACRI is derived from a model of the statistical relationship between the weather components of the Actuaries Climate Index (ACI) and property damage caused by severe weather. The ACRI distinguishes the losses due to changes in weather from the larger set of losses due to increases in risk exposure. The resulting ACRI for the United States totals $24 billion during the post-reference period, 1991–2016, equal to approximately 5% of weather-related losses during that period.

The Life Illustrations Work Group sent a letter to the NAIC IUL Illustration (A) Subgroup regarding the illustrations of Indexed Universal Life (IUL) insurance policies under Actuarial Guideline XLIX (AG 49), and the American Council of Life Insurers proposal for AG 49-A. 

The American Academy of Actuaries submitted a letter to members of the Blanks Working Group regarding their proposal on the certification of continuing education (“CE”) compliance by “Appointed Actuaries” who sign statements of actuarial opinion for property and casualty insurers.

The Medicare Subcommittee released an issue brief on the fundamental long-range financing challenges facing the Medicare program. Read the news release.

The Life Practice Council sent a comment letter to the Actuarial Standards Board on the proposed revision of Actuarial Standard of Practice (ASOP) No. 11, Reinsurance Involving Life Insurance, Annuities, or Health Benefit Plans in Financial Reports. 

The Life Valuation Committee's Principle-Based Reserve (PBR) Review Procedures Work Group released a public policy practice note, Common Practices of Examining Actuaries Involved in Statutory Financial Solvency Examinations of Life and Health Insurers, Including Considerations for Principle-Based Reserves. 

In light of the coronavirus pandemic, the Academy has extended the comment period for the exposure draft of the Actuarial Memorandum Practice Note until June 15. Comments had previously been due in March. The Actuarial Memorandum Practice Note Work Group published the exposure draft in January to provide information that can be useful for appointed actuaries dealing with challenges of producing an Actuarial Memorandum in support of the Actuarial Opinion filed as part of the Health Annual Statement Blank, which is often referred to as the Health Blank or the Orange Blank. Comments can be submitted to health@actuary.org.

The Multiemployer Plans Committee released an issue brief that addresses current practices and approaches to the selection of withdrawal liability interest rates.

The Academy’s Retirement System Assessment and Policy Committee published an issue brief that considers potential ways to optimize portability and personal management of retirement assets, income, and benefits.

The Life Principle-Based Approach Practice Note Work Group updated the 2017 VM-20 Practice Note to reflect emerging practices and changes to the Valuation Manual since the version effective for Dec. 31, 2019, valuations. 

The Public Plans Committee published a practice note reviewing current and emerging approaches to completion of the Actuarial section of the Comprehensive Annual Financial Report.

The Financial Reporting Committee submitted comments to the American Institute of Certified Public Accountants (AICPA) regarding draft revisions to the Audit and Accounting Guide: Life and Health Insurance Entities.

The Multiemployer Plans Committee submitted a letter to the Internal Revenue Service requesting leniency on the March 30th deadline for multiemployer pension plan certifications.

The Health Practice Council developed answers to several FAQs discussing the pandemic’s potential effects on health care spending and insurance as insurers develop premiums for 2021. Read the news release.

The Health Solvency Subcommittee submitted a response letter to the NAIC Health Risk-Based Capital (HRBC) Working Group for its request to provide the health bond factors over a range of additional time horizons—spanning one to five years. 

The Committee on Property and Liability Financial Reporting submitted comments on the CAS/SOA proposed new form for P/C Appointed Actuaries to report their continuing education activities.

The Pension Committee submitted a comment letter to the Internal Revenue Service on updated mortality improvement rates and static mortality tables for defined benefit pension plans for 2021.