Impact of VM-20 on life insurance product development

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By Jacqueline M. Keating, Paul M. Fedchak, Karen K. Rudolph, Uri Sobel, Andrew Steenman, Robert P. Stone | 10 January 2017

The effective date of Chapter 20 of the National Association of Insurance Commissioners Valuation Manual (VM-20) was January 1. Actuarial practice in calculating VM-20 reserves will evolve over time as companies, actuaries, and regulators gain experience in calculating such reserves. This report summarizes changes to the product development process as a result of the introduction of principle-based reserves as required under VM-20 through the development of case studies for term and universal life with secondary guarantees products.

This article was published by the Society of Actuaries.

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