A group that helped push the United States to shift toward adopting principles-based reserving for life insurance and annuity products wants to declare victory and move on to other projects.
Scott Harrison, the executive director of the Affordable Life Insurance Alliance, says the alliance aims to use its success in the area of principles-based reserving to become a force for promoting other forms of insurance regulation modernization.
Insurers could change the way they set reserves because technology gave them more information, and better ways to analyze the information, Harrison said. Now, he said, “information is changing the way consumers interact.”
Consumer access to data and tools will change the relationship between insurers and their customers, and improved tools will continue to change the insurers, Harrison said.
“Insurance companies have always been very expensive to form,” he said.