New requirements for principle-based statutory reserving for US Variable Annuity business
Document ID: 2009-1606
Published on: 30th September 2009
Author: Craig Turnbull
AG43, the emerging new piece of US actuarial guidance, will for the first time require firms to undertake a principles-based stochastic reserving calculation in their assessment of statutory reserves for Variable Annuity business. A quite similar stochastic assessment requirement has existed for a number of years for statutory capital for VA business (C-3 Phase II). However, the new reserving requirement will significantly raise the profile and implications of this type of work when it takes effect at the end of 2009.
