Valuation Actuary

  • 1980s – SOA – Committee on Life Insurance Company Valuation Principles 
  • Pricing Actuary
  • SOA – VASP – Valuation Actuary Symposium
  • The Valuation Actuary’s job is to analyze the risks that we undertake in the insurance business and the way we need to deal with them in setting our reserves. We’re going to talk about three forms of risk:
    • C-1, C-2, and C-3. The types of risks we face in the insurance business are the following.

1987 – SOA – VASP – Cash Flow Analysis Techniques, VASP871 – Society of Actuaries – 100p 

  • Academy – Implementation of the valuation actuary concept for life insurance companies continues to be a major item on the Academy’s agenda.
  • There are a number of regulatory, insurance industry and professional actuarial committees and task forces working on various aspects of the valuation actuary concept.

1986-2, NAIC Proceedings

  • The valuation actuary concept is a form of dynamic valuation.
  • It’s becoming increasingly clear that the traditional formula-driven valuation standards cannot deal with the many variations and products, and the pace and development of new products.
  • This has become more obvious to me over the last year as I’ve chaired a joint industry task force addressing reserves for nonlevel premium and benefit policies, sometimes referred to as Guideline XXX.

—  Reed P. Miller, Vice President and Corporate Actuary at Lincoln National Corporation

1990 – SOA – Emerging Issues, rsa90v16n37 – Society of Actuaries – 38p

  • As Chris indicated earlier, pricing actuaries are in a unique position relative to valuation actuaries since valuation actuaries spend their time monitoring reality.
    • Pricing actuaries, along with actuaries who work in the asset/liability modeling (ALM) area, can influence reality.
    • Their actions are highly leveraged in that if they incorrectly price a product, it can have enormous consequences for their company.
    • [Bonk: Chris = Christian J. Desrochers]

—  Mark A. Tullis

1992 – SOA – Strategic Product Development, rsa92v18n33 – Society of Actuaries – 36p

  • Major Recommendation of the report of the Joint Committee on the Role of the Valuation Actuary in the U.S. 

1984 – AAA – Journal, American Academy of Actuaries