NAIC to implement Conning’s Economic Scenario Generator tool

Written by Michael Griffiths

02/10/2020

The National Association of Insurance Commissioners (NAIC) has selected Conning to provide the Association with its Economic Scenario Generator tool.

Conning was chosen from six vendors who had responded to a request from the American Association.

On 4 March 2020, the NAIC issued a request to vendors to provide, maintain, and support an Economic Scenario Generator that produces “real-world, interest and equity scenarios” to be prescribed for use in calculations of life and annuity statutory reserves.

Conning’s Economic Scenario Generator tool uses advanced modelling and estimation technology to produce empirically validated and realistic economic behaviour. The NAIC said that Conning’s financial models are “among the industry’s most technologically advanced”.

The NAIC also stated that it looks forward to working with Conning in the near future, to begin implementing the tool for regulatory purposes with the NAIC’s Life Actuarial (A) Task Force, and Life Risk-Based Capital (E) Working Group.

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