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PBR Review (EX) Working Group


2017 Charges

The PBR Review (EX) Working Group will:

  1. Develop risk-focused examination and risk-focused analysis (analysis/examination/actuarial) procedures for PBR. Considerations include support for reviews, PBR preparedness, communication between domestics states and market states (or non-domestic states where the company has significant market share), safeguards and controls already incorporated in requirements (e.g. – documentation requirements, internal controls, linkage to risk management, corporate governance, and audited financials), coordination and consistency of all such activities, and coordination with other groups as appropriate concerning these efforts and procedures.

  2. Develop review tools and propose means to obtain information to support the review. Test the tools and information for usefulness and accuracy. Considerations include automated tools or identify software that can be used for both financial analysis and actuarial review, housing of automated tools and software, especially to create cost savings for the states, what reporting should be required via electronic data submission (e.g., in the PBR Report) to populate automated tools, tools that might be given to, or purchased by, the NAIC, central repository of information, and consultation with Information Systems (EX1) Task Force regarding tools, databases and storage needs

  3. Identify the data and other reporting needs for actuarial review, financial analysis and public transparency. Recommend changes to other NAIC groups to modify the financial statement blanks, financial statement instructions and the Valuation Manual to obtain such needed data and disclosure. Utilize confidentiality where needed, maintaining an ability to share data appropriate for valuation improvements.

  4. Identify the ideal staffing resources for PBR reviews, including ideal NAIC assistance, as well as any new financial modeling or software reviewers. After review processes are better defined, conduct another PBR state resource survey.

  5. Inform the Principle-Based Reserving Implementation (EX) Task Force of needs and responsive PBR training to inform and support PBR education for regulators and companies. Specifically, evaluate training and/or resource needs for modeling.

  6. Respond to requests from the Principle-Based Reserving Implementation (EX) Task Force.