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1. Monitor the impact of the changes to the variable annuities reserve framework and risk-based capital (RBC) calculation and determine if additional revisions need to be made.

2. Develop and recommend appropriate changes including those to improve accuracy and clarity of variable annuity (VA) capital and reserve requirements.

1. Provide recommendations for the appropriate treatment of longevity risk transfers by updating the approach to develop the C-2 capital amount for longevity reinsurance products.

2. Monitor and make recommendations as needed based on the impact from changes to the non-variable annuity reserve framework.

Life RBC

WG

In light of SAPWG INT to permit admittance of negative IMR, SAPWG requested CADTF to consider:

1. The elimination of any admitted net negative IMR from Total Adjusted Capital (TAC).

2. Sensitivity testing with and without negative IMR.

Life RBC

WG

2026 or

later

3/27/24 – received         SAPWG referral on Tax Credit Investments 2025 to address the structural and instructional changes.

5/1/25 -

Tax Credit Investment Proposal 2024-21-L MOD was adopted

2026 or

later

2/29/24 – received SAPWG regarding collateral loan reporting changes

6/16/24 – Collateral loans proposal 2024-15-L was adopted

6/5/25 – received another referral from SAPWG on Collateral Loan Schedule BA reporting changes

Referred from CADTF

Referral from Blackrock and IL DOI

NAIC Designation for Schedule D, Part 2 Section 2 - Common Stocks

Equity investments that have an underlying bond characteristic should have a lower RBC charge.  Similar to existing guidance for SVO-identified ETFs reported on Schedule D-1, are treated as bonds.

Referred from CADTF

Referral from SAPWG

8/13/2018

Referred from CADTF

Referral from VOSTF

9/21/2018

Evaluate the appropriate RBC treatment of Asset-Backed Securities (ABS), including Collateralized Loan Obligations (CLO), collateralized fund obligations (CFOs), or other similar securities carrying similar types of tail risk (Complex Assets).

Address the tail risk concerns no captured by reserves for privately structured securities.

Request from E Committee, SAPWG, VOSTF

Referral from the Macroprudential (E) Working Group

1/12/2022

8/13/2022

Per the request of E Committee comments were solicited asking if these types of assets should be considered a part of the RBC framework.

Proposal 2023-09-IRE was adopted in 2023 to effect a 45% factor for residual tranches/interest for life insurers with effect from YE 2024 reporting. This was deemed an interim solution, subject to positive or negative adjustments based on American Academy of Actuaries’ study. (IR4)

Evaluate a) the current growth risk methodology whether it is adequately reflects both operational risk and underwriting risk; b) the premium and reserve based growth risk factors either as a stand-alone task or in conjunction with the ongoing underwriting risk factor review with consideration of the operational risk component of excessive growth; c) whether the application of the growth factors to NET proxies adequately accounts for growth risk that is ceded to reinsures that do not trigger growth risk in their own right.

Referral to the Academy:

https://naiconline.sharepoint.com/teams/FRSRBC/PRBC/2018%20Calls%20-%20PRBC/PCRBC/06_14/attC01_Growth%20Risk%20Referral%20to%20Academy.pdf

11/16/23 The Academy provided a presentation on their Underwriting Risk Report at the Joint PCRBC And Cat Risk SG meeting.

3/17/23 Proposal 2024-11-P was exposed for a 30-day public comment period during the Spring National Meeting.

4/25/24 Proposal 2024-11-P was adopted during the PCRBCWG interim meeting.

11/12/25 The Academy provided a presentation on loss concentration factors report at the Joint PCRBC and Cat Risk SG meeting.

Consider:

1. further investigating all geographic concentration related issues.

   possibly modifying the property and casualty (P/C) risk-based capital formulas

Adopted 2024-09-CA (YE-2024)

(Based on Academy report expected to be received at YE-2016)
2016-17-CA

Adopted proposal 2023-01-CA

Change the Structure of page XR013, PR020, and LR020 to align with the lines of business found on Page 7 Analysis of Operations.

Add separate line to separate the Investment Income Adjustment from the factors

Expand Exhibit 7 to include new modes of Managed Care Business

Expand to collect data by line of business found on Page 7 Analysis of Operations

1/23/24 – the TF received a referral from SAPWG regarding collateral loan reporting changes

3/26/24 – the TF exposed this referral for a 45-day public comment period.

6/28/24 – the SAPWG provided updates on this project.

10/14/24 – the SAPWG provide another referral to the Task Force.

3/25/25 – the SAPWG provide another update at the Spring Meeting.

6/30/25 – the TF exposed another referral from SAPWG for a 45-day public comment period.

5/15/25 – TF discussed received comments.

10/31/25 – pending until further direction from MOGO

4/30/24 – the referral was exposed for a 30-day public comment period.

6/28/24 – the SAPWG provided updates on this project.

11/18/24 – TF exposed proposal 2024-26-CA for a 75-day public comment period.

3/25/25 – TF re-exposed proposal for a 30-day public comment period.

5/15/25 – TF adopted Proposal 2024-26-CA

3/25/25 – TF exposed proposal for a 30-day public comment period.

5/15/25 – TF adopted proposal 2025-07-CA MOD.