Oliver Wyman

Using company data and feedback from 12 of the largest variable annuity writers in the United States, this new Oliver Wyman report finds the proposed statutory framework is more market sensitive than prior standards and may produce unintended and non-intuitive results for affected life insurers.  Among the key issues discussed are potential disincentives to hedge economic risks, the dominating impact of the Standard Scenario floor, misalignment of the sensitivity of statutory results with the underlying risk fundamentals, and increased and/or undue pro-cyclical volatility in capital requirements for insurers.  The report's findings were recently presented to the Life and Health Actuarial Task Force (LHATF) of the National Association of Insurance Commissioners (NAIC) at the NAIC Spring 2010 National Meeting in Denver. In addition, an educational session and associated slide presentation were recently prepared to accompany the Oliver Wyman report.
 

Report: Observations on Emerging Variable Annuity Statutory Accounting Results Download >

Presentation: Variable annuity statutory framework review initiative - Update and appendix (October 2010) Request a copy >

Presentation: Phase 2 - Investigation into refinements (August 2010) Request a copy >

Presentation: Developing refinements for AG43 and C-3 Phase II RBC for variable annuities (August 2010) Request a copy >

Presentation: Emerging issues with AG43 and C-3 Phase II RBC for variable annuities (June 2010) Request a copy >