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NAIC Selects Conning to Provide Economic Scenario Generator Services for the U.S. Life Insurance Industry
KANSAS CITY, Mo (October 1, 2020) –The National Association of Insurance Commissioners (NAIC) recently selected Conning, Inc. to provide Economic Scenario Generator (ESG) services.
On March 4, 2020, the NAIC issued Request for Proposal #2053, soliciting proposals from vendors to provide, maintain, and support an ESG that produces real-world, interest and equity scenarios to be prescribed for use in calculations of life and annuity statutory reserves according to the Valuation Manual (e.g., VM-20, VM-21) and capital under the NAIC RBC Requirements (e.g., C3 Phase 1, C3 Phase 2). NAIC received six proposals and selected Conning.
Conning’s ESG tool uses advanced modeling and estimation technology to produce empirically validated, realistic economic behavior, and its financial models are among the industry’s most technologically advanced.
The NAIC looks forward to working with Conning in the near future to begin work on the ESG with the NAIC’s Life Actuarial (A) Task Force and Life Risk-Based Capital (E) Working Group to implement the ESG for regulatory purposes.