During the last year, there has been considerable progress in moving to a principle based approach for many life insurance and annuity products, both from a reserve and capital viewpoint. This session will provide an overview of the proposed methods to calculate RBC using a principle based approach for life and annuity products along with the status of the current proposals. In addition, this session will provide actuaries with insights about which risks would be covered by reserves vs. capital; transition issues from a formulaic to a principle-based approach, and what could be done to prepare for a successful implementation.

Actuaries attending this session will obtain a broad overview of the proposals to move RBC to a principle based approach along with insights into implementation challenges.