The Life and Health Actuarial Task Force is moving to make the Standard Valuation Law compatible with a “principles-based” approach to valuations.
LHATF met Thursday and Friday at the summer meeting of the National Association of Insurance Commissioners, Kansas City, Mo., in Minneapolis.
Task force members talked about topics such as developments in international accounting and a collection of capital and surplus relief proposals.
Task force members approved several of the recommendations, including adoption of a model regulation permitting use of preferred mortality tables in reserve liability determinations and a life insurance policy valuation model regulation.
Task force members also adopted a revision to the Standard Valuation Law.
Advocates of a principles-based approach to valuations want to promote use of actuarial judgment and modern statistical forecasting methods, and away from reliance on static formulas.
Adoption of the SVL revision was seen as a move to continue support for the principles-based approach to insurance regulation, despite a fear that the financial crisis might be slowing any effort that even appears to be lightening financial services companies’ regulatory burden.