NAIC Spring 2024 Meeting: The SOA Presents to Multiple Taskforces
April 2024
The Society of Actuaries (SOA) participated in the National Association of Insurance Commissioners (NAIC) 2024 Spring National Meeting in Phoenix, AZ, from March 15 to 18. Staff and volunteers from the SOA and SOA Research Institute regularly attend NAIC national meetings, sharing updates on key research and related topics of interest to regulators and other insurance experts.
Applying Total Risk Analysis in Health Care Spending
Kate Eubank, FSA, MAAA, Senior Experience Studies Actuary, SOA Research Institute, and Achilles Natsis, FSA, MAAA, Health Research Actuary, SOA Research Institute, presented findings from the report, Calculated Risk: Driving Decisions Using the 5/50 Research to the Health (A) Force (HATF). They explained how total risk analysis (TRA) provides a framework for consistently answering questions such as “What is the probability you will lose more than $1 million?” They also touched on the SOA Research Institute’s plans for long-term care experience studies and gave an overview of other research reports recently published by the SOA Research Institute.
Life Requirements and Experience Studies
SOA volunteer Marianne Purushotham, FSA, MAAA, Corporate Vice President, LIMRA, presented to the Life (A) Task Force (LATF) on VM-20 requirements for principle-based reserves for life products and historical and future mortality improvement factors. Joel Sklar, ASA, MAAA, an active SOA volunteer, discussed updated VM-21, requirements for principle-based reserves for variable annuities and standard projection amount assumptions.
R. Dale Hall, FSA, CERA, MAAA, Managing Director of Research, SOA Research Institute, updated LATF on the SOA Research Institute’s recently published reports, including the latest Experience Pro studies, 2015-2021 Universal Life Lapse and Surrender Experience and the 2019-2021 Variable Annuity Contract Owner Behavior Experience. They also shared findings from research into 2020-2021 mortality rates by socioeconomic groups and gave an overview of other experience studies and practice research completed by the SOA Research Institute.
Catastrophe and Climate Research
2023 was widely reported as the hottest year on record. Ann Weber, SOA Government Affairs and Legal Consultant, advised the Casualty Actuarial and Statistical (C) Task Force (CASTF) of recent research related to 2023’s historic weather events that was published by the SOA Catastrophe and Climate Strategic Research Program.
Gathering Data for Climate Reliance
In February, the NAIC released its 2024 strategic priorities, which include five areas of concern to consumers, insurers and markets:
- Climate risks/natural catastrophes and resilience
- Insurer financial oversight and transparency
- Marketing of insurance products
- Race and insurance, financial inclusion and protection gaps
- Use of artificial intelligence by insurers and cyber risk
At the spring meeting, NAIC state insurance regulators issued a call for data from about 400 property insurers covering more than 80% of the U.S. property insurance market. This data call is part of the action items in the NAIC’s National Climate Resilience Strategy for Insurance document and will help identify costs, coverages and protection gaps.
Learning from a Regulator’s Perspective
The SOA hosted a reception dinner, joined by guest speaker Barbara D. Richardson, Arizona Department of Insurance Financial Institutions Cabinet Executive Officer. Richardson discussed the need to address insurance fraud and other issues that touched on her state, such as encouraging proactive measures to mitigate damage caused by wildfires.
Discover more about the SOA Research Institute, and explore its wide range of research across practices.