Actuaries Press for Tougher Variable Annuity Capital Testing Approach
March 26, 2019 by Allison Bell
Actuarial consultants at Oliver Wyman Inc. are clashing with the American Council of Life Insurers (ACLI) over how companies should verify whether they have enough capital to back their variable annuity obligations.
Oliver Wyman consultants say issuers should use a tougher forecasting method.
The ACLI says regulators should let issuers use a less harsh forecasting method.
Members of the Variable Annuities Issues Working Group, an arm of the of the National Association of Insurance Commissioners (NAIC), have talked about the two approaches during a conference call meeting earlier this month.
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