Risk management and financial reporting news

The Risk Management and Financial Reporting Council provides objective technical expertise to policy-makers and regulators on issues involving risk management and/or financial reporting.

Maryellen Coggins, Academy vice president for risk management and financial reporting issues, leads the council.

Comments to the IASB defining contract boundary for insurance contracts

The American Academy of Actuaries International Accounting Standards Task Force submitted comments to the IASB on the topic of defining the contract boundary for insurance contracts. (12/21/11)

Comments to Financial Stability Oversight Council on systemic risk rule

The Financial Regulatory Reform Task Force provided comments to the FSOC on its proposed rule relating to systemically important financial institutions. (12/19/11)

Responses on OCI and discount rate

The International Accounting Standards Task Force responds to a request for input from IASB staff on Other Comprehensive Income (OCI) and approaches to setting the discount rate for valuation of insurance contracts. (12/19/11)

Comments to Treasury on modernizing insurance regulation

The Financial Regulatory Reform Task Force submitted its response to the Federal Insurance Office on how to modernize and improve the U.S. system of insurance regulation.(12/19/11)

Risk Classification Monograph

The Risk Classification Work Group published “On Risk Classification” an update to the 1980 “Risk Classification Statement of Principles”. This monograph is intended to provide actuaries and other interested parties with an in-depth but accessible discussion of the concepts underlying risk classification as it is applied in all actuarial practice areas. (11/15/11)

Comments on revised ORSA Manual

The ERM Committee submitted wording suggestions explicitly recognizing the model risk for insurers to the NAIC on its Own Risk and Solvency Assessment (ORSA) Guidance Manual. (10/31/11)

Response to IASB on its Agenda Consultation 2011

The Financial Reporting Committee and International Accounting Standards Task Force responded to the International Accounting Standards Board (IASB) on its Agenda Consultation 2011 urging for the completion of the insurance contracts standard and the addition of research to the scope of the IASB mission. (10/27/11)

Letter to NAIC on SSAP No. 101

The Academy’s DTA Bridge Group sent a letter to the NAIC relating to the SSAP No. 101 - Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10 recently adopted by the NAIC’s Statutory Accounting Principles Working Group. (10/25/11)

Comments on Public Company Accounting Oversight Board paper

The Financial Reporting Committee commented on a paper by the Public Company Accounting Oversight Board (PCAOB) on the issues surrounding the auditor's report based on recent investor feedback. The committee's comments included a recommendation to increase disclosure and provide more detail to the auditor's reporting model. (09/30/11)

Comments on NAIC Reinsurance Model Law

The Reinsurance Subcommittee submits comments to the NAIC on the actuarial requirements stated in the Exposure Draft of the Credit for Reinsurance Model Law and Regulation.

Comments on ORSA Guidance Manual

The ERM Committee submitted comments to the NAIC on its Own Risk and Solvency Assessment (ORSA) Guidance Manual supporting its view that the manual offers ORSA guidance which  focuses on the most fundamental components of a strong ERM framework. (08/25/11)

Comments to IAIS on ComFrame paper

The Solvency Committee submitted comments to the International Association of Insurance Supervisor (IAIS) on its concept paper, Common Framework for the Supervision of Internationally Active Insurance Groups. These comments further address the methods of operating group-wide supervision of internationally active insurance groups. (08/25/11)

Comments to NAIC on ComFrame

The Solvency Committee submits comments to the NAIC on its ComFrame Concept Paper Draft US Responses and supports the position that the modules should be outcome-oriented rather than prescriptive. (08/16/11)

Comments to IAA on ComFrame paper

The Solvency Committee submitted comments to the International Actuarial Association (IAA) on the International Association of Insurance Supervisor (IAIS) concept paper, Common Framework for the Supervision of Internationally Active Insurance Groups. The committee addressed questions presented in the paper relating to Own Risk & Solvency Assessment (ORSA), corporate governance, and Enterprise Risk Management. (07/28/11)

Systemic Risk Metrics Sent to Treasury

The Academy's Financial Regulatory Reform Task Force submitted a letter to the Department of the Treasury outlining the metrics intended to aid in identifying systemic risk in the insurance sector. (06/24/11)

DTA Bridge Group submits clarification letter

The Deferred Tax Asset Bridge Group submits a letter to the NAIC clarifying a 2010 report.

Comments on revised ICP 14

The Solvency Committee provided input to the NAIC on the recently revised International Association of Insurance Supervisors paper, Insurance Core Principle 14: Valuation for Solvency Purposes. (05/20/11)

Comments on Valuation for Solvency Purposes

The Solvency Committee submits comments to the IAA and additional comments to the NAIC on the IAIS paper, ICP 14: Valuation for Solvency Purposes. (04/13/11)

Reinsurance Comments on Insurance Contracts

The Reinsurance Subcommittee submits a letter to the IASB on its Insurance Contracts Exposure Draft. (04/13/11)

Comments on ORSA Proposal

The ERM Committee submits comments to the NAIC on its U.S. Own Risk and Solvency Assessment (ORSA) Proposal. (03/23/11)

Comments on systemic risk of non-bank financial companies

The Financial Regulatory Reform Task Force submits comments to the Financial Stability Oversight Council on its proposed rule, Authority to Require Supervision and Regulation of Certain Non-Bank Financial Companies.  (02/25/11)

Comments on CRA Ratings document

The Solvency Committee submits comments to the IAIS on the Financial Stability Board's (FSB) Principles for Reducing Reliance on CRA [Credit Rating Agencies] Ratings document.

IAIS Corporate Governance comments submitted

The ERM Committee provided comments to the IAIS on its draft of ICP7: Corporate Governance.

Discount Rates presentation

The Academy presents an educational session on the discount rate for insurance contracts to FASB and IASB. (02/11/11)

DTA Bridge Group Releases Revised Report

The Deferred Tax Asset Bridge Group submits a revised report and accompanying cover letter to the NAIC Capital Adequacy Task Force showing the appropriate treatment of the Deferred Tax Asset (DTA) in the Risk-Based Capital formulas for Life, Property / Casualty (P&C), and Health. (12/16/10)

Task Force Releases Revised Monograph

The Financial Regulatory Reform Task Force releases Role of the Actuary Under Federal Risk and Insurance Oversight, an update to the 2003 Role of the Actuary monograph. (12/15/10)

Academy comments on IASB and FASB Insurance Contracts

The IFRS Task Force comments to the IASB on its Insurance Contracts Exposure Draft and comments to the FASB on its accompanying Discussion Paper.

Academy responds to NAIC request

Academy responds to NAIC request on risk-based capital issues

Comments on Med Mal

The Financial Reporting Committee submits comment to FASB on its Proposed Accounting Standards Update, Health Care Entities (Topic 954) - Accounting for Legal Costs Associated with Medical Malpractice and Similar Claims. (11/09/10)

Comments on ORSA

The ERM Committee responds to the NAIC on its Consultation Paper on the Own Risk and Solvency Assessment (ORSA) for the Solvency Modernization Initiative. (11/09/10)

Comments on Group Capital Assessment Options

The Solvency Committee submitted comments to NAIC on its Group Capital Assessment Options Paper. (11/09/10)

DTA Bridge Group Final Report

Deferred Tax Asset Bridge Group submits a final report to the NAIC Capital Adequacy Task Force showing the appropriate treatment of the Deferred Tax Asset (DTA) in the Risk-Based Capital formulas for Life, Property / Casualty (P&C), and Health. (10/01/10)

Comments on Financial Instruments paper

The Financial Reporting Committee and Life Financial Reporting Committee submit comments to FASB on its Proposed Accounting Standards Update, Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities. (10/01/10)

Academy comments to the IAIS on Group-wide Regulatory Requirements

The Academy's Risk Management and Solvency Committee submits comments to the IAIS on its Draft Standard on Group-wide Regulatory Requirements and Guidance on Group-wide Supervision Framework.

Academy Comments on Statutory Accounting

The Financial Reporting Committee and Risk Management and Solvency Committee submitted comments on the June 2010 Primary Considerations to the NAIC Statutory Accounting and Financial Reporting (EX) Subgroup.

Comments on IASB Amortized Costs Exposure Draft

The Academy sends comments to the IASB concerning its Exposure Draft Financial Instruments: Amortised Cost and Impairment.

DTA Bridge Group Report

The Academy's DTA Bridge Group submits a requested interim report to the NAIC Capital Adequacy Task Force showing the appropriate treatment of the Deferred Tax Asset (DTA) in the Risk-Based Capital formulas for Life, Property / Casualty (P&C), and Health.

Task Force sends letter on Office of Financial Research

The Financial Regulatory Reform Task Force urges Congress to include an Office of the Chief Actuary in the Office of Financial Research as Congress is in conference reconciling bills H.R.4173 and S.3217.

Systemic Risk White Paper released

The Financial Regulatory Reform Task Force releases the white paper, Role of the Systemic Risk Regulator. The white paper outlines new key functions necessary for effective systemic risk regulation.

Comments on IAIS Capital Adequacy Guidance Paper

The Committee commented to the IAIS on its Guidance Paper on Capital Adequacy for Regulatory Solvency Purposes.

Solvency modernization comments to NAIC

The Academy's ERM Subcommittee comments on the NAIC's Solvency Modernization Initiative (EX) Task Force's
Consultation Paper on Corporate Governance and Risk Management and the Regulatory Capital Requirements Task Force responds to questions posed in the Consultation Paper on Regulatory Capital Requirements and Overarching Accounting and Valuation Issues for the Solvency Modernization Initiative.

Letter to IASB and FASB

The Academy's Financial Reporting Committee comments on the recent vote by the IASB and confirmation by the FASB to not permit the recognition of revenue for incremental acquisition expenses upon the initial measurement of an insurance contract.

Comments to FASB

The Academy's Life Financial Reporting Committee and Financial Reporting Committee comment on the FASB on exposure draft, Proposed ASU-Financial Services-Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts.

Comments to NAIC

The Academy's Risk Management and Solvency Committee comments to the NAIC on its draft memorandum, "Windows and Walls" Approach for Regulation of United States Based Insurers Operating within Corporate Groups.

Operational risk modelling comments to Bank for International Settlements

The Academy's ERM Subcommittee comments on the Basel Committee on Banking Supervision's consultation document, Recognizing the risk-mitigating impact of insurance in operational risk modelling.

Comments supporting the creation of an Office of the Actuary

In comments on H.R. 2609, the Insurance Information Act, and H.R. 4173, the Wall Street Reform and Consumer Protection Act of 2009, the Financial Regulatory Reform Task Force recommends including an explicit provision in the legislation to include important professional expertise by creating an Office of the Actuary.

Comments to NAIC on financial solvency framework

The Risk Management and Solvency Committee comments to the NAIC on its draft paper, United States Insurance Financial Solvency Framework.

Testimony addressing systemic risk

The Risk Management & Financial Reporting Council provides testimony to the Senate Committee on Agriculture, Nutrition & Forestry supporting the establishment of a governmental systemic risk regulator.

Letter to the House of Representatives

The Financial Regulatory Reform Task Force writes to Representatives Barney Frank and Spencer Bachus recommending a change to the current draft of the Insurance Information Act, HR 2609 to include an explicit provision in the legislation to include important professional expertise by creating an Office of the Actuary.

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