Unified Valuation System

  • 2000 – SOA – What Is the Unified Valuation System (UVS) and What Are its Origins?, by Donna C. Novak, hsn-2000-iss37-novak-a – Society of Actuaries – 3p
  • 2001 – SOA – Enterprise Risk Managment Meets Unified Valuation System, rsa01v27n258pd – Society of Actuaries – 21p
  • The currently proposed principle-based capital and reserve methodologies devolved from the Unified Valuation System (UVS) proposal.
    • UVS sought to determine the level of assets required by a company to remain solvent at a given level of tail risk. The original UVS incorporated all of the material obligations of an insurance company for the full duration of those obligations.
    • The current principle-based approach (PBA) is limited to certain life and annuity products and only stochastically varies the interest rates and other dependent variables such as lapse and policyholder behavior.
    • The current PBA approach cannot directly quantify the probability of insolvency due to the limited
      breadth of the products covered and the limited variables that are stochastically tested.

2010 – SOA – Comments on the Proposed Principle Based Reserves and Principle-Based Capital Requirements Methodology, By David V. Smith, stn-2010-iss34-smith – Society of Actuaries – 3p