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October 03, 2006 at 05:05 PM
Actuaries are looking for ways to tailor the new “principles-based approach” to their art to suit the Davids of the insurance industry as well as the Goliaths.
Speakers talked about applying the principles-based approach to reserving to smaller companies during two recent Webcasts.
One of the discussions was presented by the American Academy of Actuaries, Washington, and the other by the Affordable Life Insurance Alliance, Washington.
During the AAA Webcast, speakers reaffirmed the group’s commitment to developing a principles-based approach by December.
Speakers also reviewed changes requested by smaller insurers that were incorporated in drafts of a model regulation and actuarial guidelines exposed for comment during the fall national meeting of the National Association of Insurance Commissioners, Kansas City, Mo.
One change was an added option for a state to exempt a form or product from the principles-based reserve calculation, and another has clarified that a simplified approach to determine the net asset earned rates can be used, speakers said, according to a written version of the Webcast.
A third would allow a company to increase the required minimum deterministic reserve, a component of the overall reserving requirement, in order to meet the stochastic modeling exclusion, speakers said.
