Imagine a model office providing many different types of products, with many different types of assets.
That office would produce a wide range of reserve and capital results.
State insurance regulators plan to hire consultants to create such a simulation of a variable annuity issuer. The results could help the National Association of Insurance Commissioners analyze what real insurers are saying about how they might perform in different economic scenarios.
The NAIC wants to see how the simulation, or "variable annuity model office," does in the different economic conditions bubbling out of the NAIC's new Economic Scenario Generator tool.
The NAIC will compare the performance of the model office with the performance forecasts provided by real insurers to determine whether the real insurers' performance forecasts seem reasonable.
