The SVL Interest Rate Modernization Work Group submitted comments on a revised weighting methodology proposal to the NAIC's VM-22 (A) Subgroup.

Academy Senior Health Fellow Cori Uccello and Karen Bender, chairperson of the Academy's Individual and Small Group Markets Committee, submitted testimony on the effectiveness of the individual mandate under the Affordable Care Act (ACA) to a U.S. House Ways and Means Oversight Subcommittee hearing. 

The AG 43/C-3 Phase II Work Group submitted comments to the NAIC’s Variable Annuities Issues (E) Working Group on version 1 of the draft specifications for the second quantitative impact study.

Senior Pension Fellow Ted Goldman presented on “Longevity and Retirement Security” at the U.S. Chamber of Commerce’s “The Shifting Paradigm of Retirement” forum in Washington on Feb. 3, reviewing the jointly sponsored Actuaries Longevity Illustrator and the challenges of and potential approaches to addressing longevity risk. View the slides.

The Health Financial Reporting and Solvency Committee sent comments to the Long-Term Care Valuation (B) Subgroup on asset treatment for stand-alone LTC asset adequacy analysis.

The Standard Valuation Law Interest Rate Modernization Work Group submitted comments to the NAIC’s Life Actuarial Task Force (LATF) on its “VM-22: Maximum Valuation Interest Rates for Income Annuities” exposure draft.

The Individual and Small Group Markets Committee released a public policy paper that outlines what’s needed for a sustainable health insurance individual market, assesses how well the Affordable Care Act has achieved those conditions, and explores how ideas for addressing challenges would affect the market. Read An Evaluation of the Individual Health Insurance Market and Implications of Potential Changes and accompanying news release.

The Non-Guaranteed Elements Work Group submitted comments to the New York state Department of Financial Services on Proposed 11 NYCRR 48 (Insurance Regulation 210) on life insurance and annuity non-guaranteed elements.

The Academy has been the technical architect behind principle-based reserving (PBR), helping to shape PBR into the valuation standard for life insurance issued after Jan. 1, 2017, in the 46 states that have passed standard valuation PBR-enabling legislation. PBR uses risk management techniques to capture an individual insurer’s unique risks underlying its life insurance business more accurately than the pre-existing requirements based on prescribed, static methods and assumptions. The Academy has assembled materials to assist actuaries and regulators as the United States moves into the implementation phase of PBR for life insurance. Read more here.

The LTC Reform Subcommittee submitted a comment letter to the Maryland Insurance Administration Public Hearing on Long-Term Care Insurance.

The Pension Cost Work Group released an issue brief, Alternatives for Pension Cost Recognition—Implementation Approaches Using Bond Models, that explores potential approaches for determining pension costs.

The Academy released its 2016 P/C Loss Reserve Law Manual, which is updated from 2015 and designed to help appointed actuaries comply with NAIC annual statement requirements. The manual includes SAO requirements and state laws and regulations establishing requirements; annual statement instructions for the SAOs for P/C, title loss, and loss expense reserves; and other pertinent annual statement instructions. The manual is available online or as a CD-ROM, and members can order online here. 

The Committee on Property and Liability Financial Reporting (COPLFR) released the Statements of Actuarial Opinion on P/C Loss Reserves practice note.

The Life Operational Risk Work Group submitted comments to the NAIC's Operational Risk (E) Subgroup on proposed operational risk factors and growth charge for the life risk-based capital (RBC) formula. Appendix attached.

The Property and Casualty Risk-Based Capital Committee and the Health Solvency Subcommittee jointly submitted to the NAIC's Operational Risk Subgroup a comment letter on proposed changes to the operational risk factor in risk-based capital formulas for property/casualty and health. 

The GASB 74 Implementation Work Group of the Retiree Benefits Subcommittee submitted comments on the GASB 74 implementation guide exposure draft that addresses financial reporting for postemployment benefit plans other than pension plans.

The Financial Reporting Committee (FRC) submitted comments to the Financial Accounting Standards Board (FASB) on its proposed accounting standards update, Targeted Improvements to the Accounting for Long-Duration Contracts (Topic 944).

Nancy Bennett, Senior Life Practice Council Fellow, and Rich Owens, member of the Academy C1 Work Group, presented an update on portfolio adjustments to the C1 factors for corporate bonds to the NAIC Investment Risk-based Capital Working Group.

The Financial Reporting Committee released a new white paper on considerations for actuaries in implementing the FASB Short-Duration Contract Disclosures.