The Kansas Insurance Department sponsored field tests of the RSM as applied to various insurance products. Mark Birdsall was chief actuary at the time and coordinated the work. Since Blufftop LLC is participated in the tests as a consultant, Mr. Birdsall requested that we maintain this web page to help distribute results.
Phase 1 of the field tests focused on equity-indexed annuities. Two anonymous insurers submitted their actual business for valuation using RSM, and consultants were retained to implement the RSM calculation method. A summary of Phase I and its results appears in the list of downloads on the right side of this page.
Phase 2 of the field tests has several sub-parts each focusing on a different type of product. Products included are:
The modeling in Phase 2 is being done using a case-study approach rather than using actual blocks of business owned by real companies. For research purposes this may be a more cost-effective approach. Realism is being assured by peer reviewers with substantial industry experience.
Comprehensive reports on each product can be downloaded using links in the list of downloads to the right.
The following documents were prepared as part of the field tests and are available for download:
Background documents on the development of RSM as a methodology are available on this other page on this site.