Insurers should assess the impact of principles based reserving now
INSIGHT ARTICLE |
On Dec. 2, 2012, the NAIC approved a new Valuation Manual supporting principle-based reserving (PBR) for insurance company reserves. The new Valuation Manual, along with recently approved revisions to the Standard Valuation Law and the Standard Nonforfeiture Law for Life Insurance, is ready to be presented to states as a package for consideration in time for 2013 legislative sessions.
The newly approved Valuation Manual defines the methods regulators and insurers will use to calculate life insurance company reserves. PBR incorporates factors beyond interest rates and mortality to better capture product risks and ensure corporate solvency.
For more information read our related article, Assessing the impact of principles-based reserving on your organization.