NAIC task force recommends 10-year data history for index illustrations
November 18, 2025 by John Hilton
A National Association of Insurance Commissioners task force agreed Thursday to recommend that 10 years of historical data be required to illustrate index components.
The recommendation defied industry lobbyists who preferred the change to Actuarial Guideline 49-A be set at five years of history. The change, along with editorial corrections, was adopted unanimously by the Life Actuarial Task Force.
Wink’s Moore on the Market: Are changes coming to indexed life illustrations?
Again?
While historically, some regulators have suggested that a hybrid index must have at least 25 years of history in order to be illustrated, the Life Actuarial Task Force (LATF) is now suggesting that 10 years is sufficient.
This means the index must have been in existence that long- not its constituents.
Don’t get all excited…while LATF has adopted this change, it still has to pass the Life Insurance and Annuities Committee, and then the NAIC Executive and Plenary Committee.
Today, there are 53 different hybrid indices available on indexed life insurance products; by contrast there are 239 on indexed annuities.
That said, 62% percent of indexed life hybrid indices do NOT have ten years of history; 68% of indexed annuities can say the same. -sjm
