"Update on Principle-Based Reserving"

The Principle-Based Reserving ("PBR") Implementation (EX) Task Force held an open meeting on March 31, 2014 at the Spring National Meeting of the National Association of Insurance Commissioners (the "NAIC").  The Task Force's "mission" is (1) to serve as the coordinating body with all NAIC technical groups (e.g., the Life Actuarial (A) Task Force) involved with projects related to the PBR initiative for life and health policies and (2) to further assess the solvency implications of life insurer-owned captive insurers and other special purpose vehicles.

This Stroock Special Bulletin looks at some of the highlights from that meeting, including the Legislative Status of PBR Implementation, the PBR Consultant's Supplemental Report, discussion regarding the proposed PBR statistical agent framework, Life Actuarial (A) Task Force developments, and PBR impact on small companies.