Although, he said that VA CARVM
is a principles-based approach to reserving, Bruins added that immediate action is needed.
A stochastic scenario approach is a major part of AG CARVM. A standard scenario to create a reserving floor has also become part of the proposal.
In the CARVM scenarios, Elstein noted that "bad" events that happen later rather than in early contract years are not being reflected in stochastic scenarios.
Tom Campbell, a life actuary with Hartford Life and chair of the VA CARVM
working group of the Academy, said one option would be to go to the Academy website and download models for an alternative methodology.