2000s – Actuarial – Snippets

  • C. Life Insurance is only Balance sheet where 99% of the reserves (the major liability risk item) include no indication of what the company actually believes about the listed future obligations other than that they are adequate.  (p49)

2001 12 – Presentation – AAA to NAIC – Risk Management in the Insurance Industry – NAIC Meeting – Session 7a, American Academy of Actuaries – 51p

  • The charges which are characteristic of a universal life contract are …
    • Premium Loads are assessed on premiums paid to cover state premium tax, DAC tax and sales related expenses. They are expressed as a percent of premiums and are deducted from premiums upon receipt.
    • Monthly Loads can be on a per policy and a per unit basis. They are deducted from the daily interest account or the equity indexed bucket(s) on monthiversaries.
    • Cost of Insurance charges are deducted from the daily interest account or the equity indexed bucket(s) on monthiversaries.

2008 0910 – AAA to SEC – Initial Comments on Release Nos. 33-8933 & 34-58022 (File No. S7-14-08): Proposed Rule 151A, American Academy of Actuaries – 67p

  • Dave Sandberg with the American Academy of Actuaries (AAA) … said companies in Australia, the United Kingdom, and Canada were subject to principles-based reserving requirements, and had remained solvent despite the far-reaching impacts of a global credit crisis.
    • He said the current reserving requirements in the United States hid the real risks. 

2008 1120 – NCOIL – Life Insurance & Financial Planning Committee Minutes – National Conference of Insurance Legislators – 6p

  • Product designs can be complex, with benefits contingent on a range of potential risks that may vary over time, as well as with certain guarantees made by the insurer.

2009 1124 – Letter – AAA to GOV (House) Barney Frank (D-MA) / Spencer Bachus (R-AL) – Financial Regulatory Reform Task Force of the American Academy of Actuaries – 3p

  • The time has come for a financial regulator focused on systemic risk.
  • ….
  • The insurance industry is exposed to systemic risk. 
  • The viability of the insurance sector rests on the perception that insurers can and will meet their promises.

Testimony Concerning OTC Derivatives Reform and Addressing Systemic Risk Submitted for the Record, By Henry Siegel, Vice President, Risk Management and Financial Reporting Council of the American Academy of Actuaries – 4p

2009 0209 – U.S. Senate Committee on Agriculture, Nutrition & Forestry