The National Association of Insurance Commissioners has authorized a new working group that will examine the issue of principle-based reserving.
The NAIC gave its endorsement to the new group at its summer meeting here June 11. The next day, the group held an organizational meeting.
The working group was formed even as a number of American Academy of Actuaries’ working groups advance toward completion of their work on principle-based reserving. The organization, based in Washington, promises to have necessary work done on mortality tables by year-end 2006.
As that work progresses, the American Council of Life Insurers, Washington, has proposed an interim solution, which the NAIC could adopt at its fall meeting in St. Louis. The purpose of an interim solution is to get the framework of a principle-based system ready by April 1, 2007, until the more long-term project is completed.