LDTI: a comprehensive view of implementation at US life insurers

The report gathers thoughts and views from a cross section of the industry.

The feedback gathered tell us most are on target for implementation in 2023. They plan to finish implementation by end of 2021 with the intent to run parallel for three-four quarters in 2022. Some participants also suggested that they plan to use time in 2022 to review additional disclosure and reporting requirements including need for detailed attribution analysis.

Across the group, participants identified a number of challenges in their LDTI implementation including:

  • Data Management: Data Sourcing, Storage, and Infrastructure
  • Actuarial and Financial transformation initiatives running in parallel
  • Coordination across the streams
  • Interpretations of the standard and adapting policy changes. For instance, LDTI’s impacts on reinsurance, especially in situations where the reinsurer provides administrative accounting and actuarial services
  • Aligning LDTI project goals with these broader initiatives
  • Resource constraints
  • Increased volatility and financials