International Capital Requirements and IFRS

R. Thomas Herget, FSA, MAAA, CERA
Rodrigo Careaga

Tom Herget will talk about current group capital developments in the US.  He will discuss the concept of capital, what capital should cover, the IAIS’ Insurance Capital Standard (the ICS), the US’s Fed’s group capital initiative and the US’s NAIC group capital initiative.

Rodrigo Careaga will cover the following topics:
1. IFRS Update
   a. Expected timeline and next steps
   b. High-level overview of the standard
   c. Latest decisions (nov IASB meeting)
2. Industry Update
   a. Implementation status of key players
   b. Industry activity and key challenges
   c. Lessons learnt

CAA Mar2017 Group Capital Presentation

Tom Herget is a retired actuary who specialized in life insurance company reporting.

Tom is a former Director and Vice President of the SOA’s Board of Directors. He is a past president of the Chicago Actuarial Association, former editor of the SOA’s Financial Reporting Section newsletter, former chair of the SoA’s Financial Reporting Section and former member of the editorial board of the North American Actuarial Journal.

He is a former chair of the American Academy of Actuaries’ Solvency Committee. He currently serves as its representative to the International Actuarial Association’s Insurance Regulation Committee’s Solvency Subcommittee as well as chair of its Group Capital subgroup. Tom is a former Director of the American Academy of Actuaries.

Tom has served the profession in several research and authoring capacities:

Chief editor of U.S. GAAP for Life Insurers (2000 and 2006).

Co-editor of Insurance Industry Mergers & Acquisitions (2005).

Project Oversight Group (POG) chair for the Society of Actuaries’ three (2007,2010 and 2013) studies on profit emergence impact of the Preliminary Views, Exposure Draft and Re-Exposure Draft for insurance contracts published by the IASB .

Other research and articles include:

o Other Comprehensive Income (The Financial Reporter, March 2012)
o Acronyms for Actuaries, an inventory of insurance influencers (The Financial Reporter, March 2012)
o Are Black Swans Real? How to better recognize, assess and respond to emerging extreme events (The Actuary, April/May 2013 as well as SOA research)
o Network Model on Systemic Risk Identification (POG member) (SOA research, October 2012)
o EU/US Life Regulatory Structures (POG chair) (SOA research, July 2013)
o Regulatory Risk (SOA research) (underway)
o Trading Places – life and pension actuaries find common ground to express funding concepts (underway)
o Illustrating Multiple Measurement Bases and their Application (POG member) (underway)

Tom worked from 1982 to 2008 at PolySystems, Inc. where he was Executive Vice President and Principal Owner, responsible for customer support, consulting and implementation projects. Prior to that, Tom worked at The Hartford, Peat Marwick and CNA.

Tom holds a B.A. degree in Actuarial Science (1972) from the University of Illinois.

Rodrigo_careaga

Rodrigo Careaga joined PwC in February 2016 as a Director in the Chicago office. He has over 15 years of consulting experience serving life and annuity insurance companies with focus on financial reporting measurement.

Rodrigo has led numerous projects assisting his clients in understanding the business implications of the new Insurance Contracts proposals from the FASB and IASB. His primary professional experience includes:
• Leading actuarial audits for insurance and reinsurance companies, including Purchase Accounting for business combinations.
• Assisting clients in reviewing and addressing complex IFRS, US GAAP and US Statutory financial reporting issues.
• Assisting clients in developing harmonized US GAAP accounting policies, methodologies and assumptions across the organization.
• Preparing comment letters and performing field testing on the proposed FASB and IASB Insurance Contracts standard.
• Implementing projection models for statutory valuations, and embedded value calculations for subsidiaries of a life insurance company in Mexico and Brazil.
• Assisting in actuarial system conversion and model validation engagements, as well as process and control related validation.
• Assisting in Sarbanes-Oxley 404 compliance engagement, including the risk/control analysis and testing portion.
Rodrigo volunteered for the Society of Actuaries research project on the 2013 International Financial Reporting Standards Exposure Draft and has presented at industry meetings on advanced financial reporting topics.

Leave a Reply