The MG-ALFA financial projection software now offers support for A.G. 43.
The actuarial guideline, adopted by the National Association of Insurance Commissioners, Kansas City, Mo., helps insurers and others apply VA-CARVM — the Commissioners’ Annuity Reserve Valuation Method for variable annuities with guarantee provisions.
Milliman Inc., Seattle, says the new version of the MG-ALFA software includes features such as a tool for handling both the “standard scenario” – a pre-set set of bad conditions that can be used to test the adequacy of VA reserves — and “conditional tail expectations” — a range of possible bad conditions.
The system also can create projections that incorporate the effects of hedging and reflect forecasts of hedge effectiveness, and it can provide reserve calculations both for individual annuities and for a total book of business.
The A.G. 43 update builds on earlier revisions that incorporate the effects of the C3 Phase 2 Risk-Based Capital Requirements for Variable Annuities, Milliman says.