The Academy has been instrumental in the ambitious effort to modernize the framework for determining life insurers’ statutory required capital and reserves in the United States.
The Principle-based Approach (PBA) to reserves and capital uses risk analysis and risk management techniques to capture underlying life insurance and annuity risks more accurately than the current rule-based, one-size-fits-all approach.

PBA resources

• Introduction to PBA
• Recent reports from Life Practice Council groups to the NAIC on the principle-based project.
• American Academy of Actuaries and Society of Actuaries Joint Project Oversight Group presentation to the NAIC Life Actuarial (A) Task Force on the development of the 2014 VBT tables, 2017 CSO tables, and PBR margins (March 26, 2015)
• The latest LATF exposure drafts (a link to the NAIC website’s Life Actuarial Task Force page)
• Modeling Efficiency Resources
• PBA Practice notes:
  • Asset Adequacy Analysis practice note exposure draft (August 2014)
  • Life Principle-Based Reserved Under VM-20 practice note exposure draft (February 2014)
  • Practice Note and addendum on the Application of C3 Phase II and Actuarial Guideline 43 (March 2011)
  • Scenario and Cell Model Reduction Practice Note by the Modeling Efficiency Work Group (September 2010)
  • C3 Phase III Practice Note by the Life Reserves and Capital Practice Note Work Group (December 2009)
• Economic Scenario Generators
• Life Practice Council legislation-in-brief supporting the adoption of the NAIC model Standard Valuation Law and Principle-Based Reserves.
• Essential Elements April 2015
• PBA Perspectives:
  • Spring 2015
  • Winter 2014
  • Fall 2014
  • Summer 2014