Looking for Balance in Principle-Based Reserving

In a recent article in Law360, Frederick J. Pomerantz and Aaron J. Aisen, attorneys in Goldberg Segalla’s Global Insurance Services Practice Group, provide a comprehensive overview of Principle-Based Reserving and the reasoning behind the National Association of Insurance Commissioners’ decision to adopt this new system.  The NAIC recently announced it adopted the recommendation of the Principle-Based Reserving Implementation Task Force to switch to PBR starting Jan. 1, 2017. As Fred and Aaron write in their analysis, “There are still a number of outstanding issues
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Principle Based Reserving Coming January 1, 2017

In recent years, life insurance companies have expressed concern that the current approach to product reserves does not take into account the increasingly complex, non-static, nature of current life insurance products. In response to these concerns, the National Association of Insurance Commissioners (NAIC) conducted “an extensive analysis of amended Standard Valuation Laws passed by 45 states, representing nearly 80 percent of the U.S. life insurance market.” The end result happened on June 10, 2016, when the National Association of Insurance
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