NAIC Summer 2023 Meeting: The SOA Presents on New Experience Studies and FSA Pathway Enhancements

September 2023

Insurance regulators, actuaries and other industry experts gathered in Seattle, Washington, August 12 – 16 to participate in the National Association of Insurance Commissioners (NAIC) 2023 Summer National Meeting. Staff and volunteers from the Society of Actuaries (SOA) regularly attend NAIC national meetings, sharing updates on key research and related topics for regulators and other insurance experts.

Providing Updates on the SOA Education Program

Stuart Klugman, FSA, CERA, SOA Senior Staff Fellow, Education, presented at multiple actuarial task force meetings, outlining the plan for the evolution of the Fellow of the SOA (FSA) pathway. The SOA is making pathway enhancements to help meet the global demand for actuarial talent. The pathway enhancements will improve the FSA candidate learning experience and provide more flexibility and global relevancy in the curriculum. These updates will continue to maintain the rigor that has earned respect for the FSA designation worldwide.

Actuarial Task Force Presentations

Marianne Purushotham, FSA, MAAA, LIMRA Corporate Vice President for Statistical Analysis and Modeling, and SOA volunteer with the Mortality and Longevity Oversight Advisory Council, presented 2023 HMI and FMI scale updates to the NAIC Life Actuarial (A) Task Force (LATF).

Cynthia MacDonald, FSA, MAAA, SOA Senior Director, Experience Studies, also presented to the LATF, on behalf of Tony Phipps, FSA, MAAA, Actuarial Director at State Farm Insurance and Chair of the SOA Research Institute’s Committee on Life Insurance Expenses. She discussed the SOA’s 2023 Generally Recognized Expense Tables (GRET) recommendations for use with individual life insurance sales illustrations. The NAIC also voted to expose the proposed GRET updates to the public for 30 days, after which the NAIC will discuss the resulting comments and vote on potential adoption.

MacDonald shared at both the LATF and Health Actuarial (B) Task Force (HATF) meetings the results of a recent survey compiled to obtain regulators’ priorities on potential upcoming experience studies. Planned studies in the life and annuity lines aligned well with the LATF’s preferences. HATF members expressed their interest in a long-term care study. Both the LATF and HATF indicated their support in encouraging participation in upcoming studies that they would prioritize.

Ann Weber, SOA Legal, shared information with the Casualty Actuarial and Statistical (C) Task Force (CASTF) on the Catastrophic Cyber Risk Expert Panel Discussion Series, the Actuarial Weather Extremes report series and Cyber Risks in the Smart Home Ecosystem: Identification, Modeling, and Pricing—all recent reports from the SOA Research Institute’s Climate and Catastrophe Strategic Research Group.

Weber also gave an overview of the certificate programs of particular relevance to the task force, namely Ethical & Responsible Use of Data and Predictive Models and the Climate Risk certificate programs from the SOA.

Highlighting the SOA’s Connection to the NAIC

The SOA held a member and guest reception the day before the official summer meeting, with Kentucky Commissioner of Insurance Sharon Clark serving as the guest speaker. Clark answered questions and engaged the attendees in a lively discussion.

“Our guests very much enjoyed talking with Commissioner Clark about the role actuaries play in insurance and how they assist regulators in understanding complex issues,” said Weber, the reception’s host.

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