State regulators are awaiting results from a survey of variable annuity companies designed to help the regulators judge the adequacy of a proposed reserve model for VAs.
But at least one regulator, Allen Elstein, a life actuary with the Connecticut insurance department, is urging fellow insurance watchdogs to ensure quality control by not making the deadline for responses from companies too short.
The Life and Health Actuarial Task Force of the National Association of Insurance Commissioners is considering a draft of the actuarial guideline, Variable Annuity-Commissioners Annuity Reserve Valuation Method, known as AG VA-CARVM. Work on the guideline has been underway for several years. The reserving work for VAs with guarantees follows the C-3 Phase II project, which establishes guidelines for setting aside capital for these products.
The survey was developed in March and then sent out to companies. Seven of 9 companies should have preliminary data ready by the end of April, according to recent discussions by the NAIC, Kansas City, Mo.