New requirements for principle-based statutory reserving for US Variable Annuity business
Last updated 20th October 2009 - 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. Craig Turnbull discusses the implications.
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.
