In a recent article in Law360, Frederick J. Pomerantz and Aaron J. Aisen, attorneys in Goldberg Segalla’s Global Insurance Services Practice Group, provide a comprehensive overview of Principle-Based Reserving and the reasoning behind the National Association of Insurance Commissioners’ decision to adopt this new system.
The NAIC recently announced it adopted the recommendation of the Principle-Based Reserving Implementation Task Force to switch to PBR starting Jan. 1, 2017. As Fred and Aaron write in their analysis, “There are still a number of outstanding issues that will need to be addressed as this new methodology moves forward. In the end, PBR may strike the balance that industry and regulators are striving for in this climate.”