There has been little material developed emphasizing the options for evaluating period-to-period changes in VM-20 reserves and communicating these changes to stakeholders. This research surveys the sources of reserve movement and volatility, surveys other reporting regimes for potential attribution approaches, conducts interviews with financial reporting actuaries regarding their use of attribution methods, and provides a demonstration of a proposed attribution approach for a case study for VM-20 valuations.
This article was published by the Society of Actuaries.