State regulators clash over US life reserving principles
The NAIC’s proposals for a principles-based approach to reserving for life products has largely been met with agreement from most US states. But with the New York and California state regulators dissenting, the NAIC has a fight on its hands before the proposal can become law. Clive Davidson reports
When the National Association of Insurance Commissioners (NAIC) agreed on December 2 to adopt the Valuation Manual - a newly revised document that sets out the details of a principles-based approach to establishing insurance company reserves for life products - it described the action as a vote "to enhance consumer protections".
Not so, said the superintendent of the New York State Department of Financial Services Benjamin Lawsky. Principles-based reserving (PBR) will lead to a reduction in
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