The Pension Committee submitted comments to the Actuarial Standards Board regarding the proposed revision of Actuarial Standard of Practice (ASOP) No. 12, Risk Classification (for All Practice Areas).

The ERM/ORSA Committee submitted comments to the Actuarial Standards Board regarding the proposed revision of Actuarial Standard of Practice (ASOP) No. 12, Risk Classification (for All Practice Areas).

The Health Practice Council submitted comments on the exposure draft of Actuarial Standard of Practice (ASOP) No. 12, Risk Classification (for All Practice Areas).

The P/C Extreme Events and Property Lines Committee submitted a comment letter to the California Department of Insurance in advance of the department’s public workshop on its draft regulation that would modify state law to allow for catastrophe modeling to be used for wildfire, terrorism, and flood lines of homeowners and commercial insurance lines.

The Social Security Committee released an updated monograph and issue brief on individual equity and social adequacy as those principles apply to Social Security reform options. The monograph and issue brief compare three different Social Security reform proposals using individual equity and social adequacy—two of the important principles underlying the program—and provide details on each of the proposals and examine the data used in the illustrations. 

The Public Plans Committee released ‘Surplus’ Considerations for Public Pension Plans, an issue brief that examines plan “surplus,” what it means and does not mean, historical lessons for public plans regarding “surplus,” and considerations for plans at or approaching 100% funding in the future.

The C1 Subcommittee commented on the Oliver Wyman report on Asset-Backed Securities Residual Tranches that was exposed at the NAIC Spring National Meeting to the NAIC's Risk Based Capital Investment Risk and Evaluation (E) Working Group. 

Members of the Committee on Cyber Risk presented during the Midwestern Actuarial Forum (MAF) on the Academy’s Cyber Risk Toolkit, highlighting recent work around cyber data, the state of the cyber insurance market and recent trends in D&O, and the cyber vendor model paper.

Catch up on all the NAIC news during this recap. Academy policy analysts share key highlights of the spring meeting and look ahead to issues likely to be discussed at the NAIC Summer National Meeting, set for August in Chicago. They share updates on priority projects and identify ongoing opportunities to provide an actuarial perspective with state insurance commissioners, other regulators and stakeholders, and industry professionals.

The Financial Reporting Committee and the Life GAAP Reporting Committee sent a comment letter to the Financial Accounting Standards Board (FASB) on the exposure draft of Chapter 6: Measurement, of Concepts Statement No. 8, Conceptual Framework for Financial Reporting.

Academy Senior Fellow Rich Gibson provided a brief overview of the Committee on Cyber Risk to NAIC’s Cybersecurity (H) Working Group. The presentation highlighted the cyber risk toolkit, including an overview on the papers in the toolkit, papers expected to be published in the toolkit later this year, the public policy department’s ongoing research project on cybersecurity, and how the Academy and the committee can be helpful to the Cybersecurity (H) Working Group now that cyber insurance is included in their charges.

Academy Casualty Policy Analyst Rob Fischer provided an update on the Casualty Practice Council (CPC) activities of interest to NAIC’s Casualty Actuarial (C) Task Force, including an update on recent publications, and anticipated releases from other CPC workstreams of interest to the NAIC.

Academy Senior Health Policy Analyst Matthew Williams provided an update on the Health Practice Council (HPC) activities of interest to the National Association of Insurance Commissioners (NAIC) Health Actuarial (B) Task Force during its 2024 Spring National Meeting. Topics included key policy priorities and project updates for the HPC, as well as current workstreams with the NAIC Health Risk-Based Capital (E) Working Group (HRBC) on tiered risk-based capital factor development.

Life Policy Analyst Amanda Barry-Moilanen presented on behalf of the Life Practice Council (LPC) on current and future LPC workstreams to the National Association of Insurance Commissioners’ (NAIC) Life Actuarial (A) Task Force (LATF), as part of the NAIC Spring National Meeting in Phoenix.

The Academy’s Health, Life, and Casualty practice councils submitted comments on New York State Department of Financial Services’ proposed insurance circular letter on the use of Artificial Intelligence Systems (AIS) and External Consumer Data and Information Sources (ECDIS) in insurance underwriting and pricing. The councils support efforts to curb underwriting and pricing methods that “reflect systemic biases and can reinforce and exacerbate inequality.”

Director of Research (Public Policy) Steve Jackson and Peter Ott, chairperson of the ACI/ACRI (Actuaries Climate Index / Actuaries Climate Research Index) Working Group and a vice chairperson of the Climate Change Joint Committee, delivered a virtual presentation to the German Actuarial Association, “U.S. Actuarial Societies & the American Academy of Actuaries’ Climate Work.”

The Asset Adequacy and Reinsurance Issues Task Force presented to LATF on its recent issue brief, Asset-Intensive Reinsurance Ceded Offshore From U.S. Life Insurers (With Focus on Bermuda), at the NAIC Spring National Meeting in Phoenix.

The C1 Subcommittee presented to the NAIC’s Risk-Based Capital (RBC) Investment Risk and Evaluation (E) Working Group at the NAIC Spring National Meeting in Phoenix, giving an update on the committee’s work on asset-backed securities for RBC.

The Annuity Reserve and Capital Subcommittee, along with representatives from EY, presented updates on the upcoming VM-22 Field Test to LATF at the NAIC's Spring National Meeting in Phoenix.

The Variable Annuity and Capital Subcommittee and the Society of Actuaries Individual Annuity Experience Committee presented to LATF on proposed mortality adjustment factor updates for Valuation Manual (VM)-21 SPA assumptions at the NAIC Spring National Meeting in Phoenix.