2024 Membership

2025 Proposed Charges

The Valuation Analysis (E) Working Group will:

1. Work with NAIC resources to assist in prioritizing and responding to issues and questions regarding principle-based reserves (PBR) and asset adequacy analysis, including actuarial guidelines or other requirements.
2. Develop and implement a plan to coordinate PBR reviews/examinations.
3. Review, on a targeted basis, asset adequacy analysis filings for Actuarial Guideline LIII—Application of the Valuation Manual for Testing the Adequacy of Life Insurer Reserves (AG 53), and coordinate with states as appropriate.
4. Review, on a targeted basis, long-term care (LTC) reserve adequacy filings for Actuarial Guideline LI—The Application of Asset Adequacy Testing to Long-Term Care Insurance Reserves (AG 51), and coordinate with states as appropriate.
5. Provide a confidential forum to address questions/issues regarding PBR and asset adequacy analysis, as well as related reinsurance risk transfer issues, and make referrals, as appropriate, to other NAIC regulator groups.
6. Refer questions/issues, as appropriate, to the Life Actuarial (A) Task Force that may require consideration of changes/interpretations to be provided in the Valuation Manual or related actuarial guidelines.
7. Assist NAIC resources in the use of models and other analytical tools to support the review of PBR/asset adequacy analysis.
8. Make referrals, as appropriate, to the Financial Analysis (E) Working Group.
1. Perform other work to carry out the Valuation Analysis (E) Working Group procedures.

2024 Adopted Charges

The Valuation Analysis (E) Working Group will:

1. Work with NAIC resources to assist in prioritizing and responding to issues and questions regarding principle-based reserving (PBR) and asset adequacy analysis, including actuarial guidelines or other requirements.
2. Develop and implement a plan to coordinate PBR reviews/examinations and provide a confidential forum to address questions and issues.
3. Review asset adequacy analysis filings for Actuarial Guideline LIII—Application of the Valuation Manual for Testing the Adequacy of Life Insurer Reserves (AG 53) on a targeted basis and coordinate with states as appropriate.
4. Review long-term care (LTC) reserve adequacy filings for Actuarial Guideline LI—The Application of Asset Adequacy Testing to Long-Term Care Insurance Reserves (AG 51) on a targeted basis and coordinate with states as appropriate.
5. Provide a confidential forum to address questions/issues regarding reinsurance risk transfer with respect to PBR/asset adequacy analysis, and make referrals to other NAIC regulator groups as appropriate.
6. Refer questions/issues to the Life Actuarial (A) Task Force as appropriate that may require consideration of changes/interpretations to be provided in the Valuation Manual or related actuarial guidelines.
7. Assist NAIC resources in the use of models and other analytical tools to support the review of PBR/asset adequacy analysis.
8. Make referrals to the Financial Analysis (E) Working Group as appropriate.
9. Perform other work to carry out the Valuation Analysis (E) Working Group procedures.

FOR REGULATORS

Support Information for Regulators Regarding 
Principle-Based Reserves or Asset Adequacy Analysis

NAIC Support - Regulators can submit questions or request assistance from NAIC support staff relating to Principle-Based Reserves (PBR) or Asset Adequacy Analysis. Assistance that may be provided by NAIC support staff includes, but is not limited to: modeling of insurance cash flows to assist in conducting analysis and examinations; verification of PBR exclusion test calculations; and verification of the components of the PBR (Net Premium Reserve, Deterministic Reserve, Stochastic Reserve) on a sample of the company's contracts. Regulators can submit questions and requests for assistance to the NAIC support for the Valuation Analysis (E) Working Group (VAWG) at: pallison@naic.org.

VAWG Support - Regulators can also submit issues regarding PBR or Asset Adequacy Analysis directly to the VAWG. These submissions will typically relate to a significant concern regarding a PBR or Asset Adequacy Analysis review of a domestic company. However, there could be other reasons for a submission. To submit an issue to be discussed and addressed by the VAWG, regulators should complete the submission form and email the completed form to the NAIC support for the VAWG at:pallison@naic.org