On Tuesday, February 24, John Adduci, FSA, MAAA and Vice President, shared his deep knowledge of annuity products by filming videos on VM-22 and registered index-linked annuities (RILAs) for the SOA’s professional development program.
VM-22 is principles-based reserving (PBR) for non-variable annuities. Beginning this past January 1, companies for the first time are allowed to calculate reserves for newly issued policies using VM-22 instead of AG 33 CARVM. There is a lot of interest in seeing whether VM-22 provides the reserve relief promised by using a principles based instead of a formula driven reserve.
The sales of RILA have increased steadily since their introduction. The combination of indexed and variable annuity features with flexibility in the design make RILAs an attractive way to meet individual customers risk tolerance needs, and thus a popular product for agents to sell.
PolySystems offers lightning-fast cloud solutions for running VM-22, best-in-class valuation and projection software for RILA and all annuity products, and relevant training to navigate complex actuarial challenges.