Small Insurer: Avoiding Hard Annuity Math May Be Too Difficult
December 14, 2021 by Allison Bell
New draft rules could hurt small fixed annuity issuers that want to stick with traditional reserving methods, according to Waylon Peoples.
Peoples, vice president, life actuarial, with Erie Family Life, says the National Association of Insurance Commissioners has promised to free small, strong life and annuity issuers from having to use the complicated principles-based reserving (PBR) approach.
But a proposed update to Valuation Manual-22 has created a tough process for small annuity issuers that want a PBR exemption, Peoples writes in a comment letter on the VM-22 draft update.