Principles-Based Reporting (PBR) for the calculation of statutory reserves for life insurance is on its way for possible adoption by the NAIC this summer, if the NAIC’s Life Actuarial Task Force (LATF) pushes forward on its work, according to a task force conference call today.
LATF members are looking at a mid- to late June time frame for adoption of a valuation manual, they said. Then, the project would move to the full NAIC for adoption, likely at its national meeting in Atlanta this August.
There may be less time for re-exposure of edits to key documents, LATF task force members noted, but said that work will continue after June, and if some issues are put to bed prematurely, there will be time to “wake them up,” a key LATF member said on a conference call May 3.
There will still be time after June to make sure additional areas are covered, Mike Boerner, Managing Actuary at the Texas Department of Insurance an the task force said.
It is important for the NAIC to have adoption this year in time for consideration by state legislatures in 2013, when most meet, many have said. Otherwise, without introduction and critical mass of state passages, PBR effective dates and implementation could be delayed. PBR adoption has already been delayed, as it was not ready at the March meeting.
Forty-two state legislatures are needed to get the PBR valuation manual officially passed, and implementation is seen by many as three years away, or January 2015, under this scenario, and time is growing short.