US insurers expected to redesign products in response to new reserving guidelines

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Insurers will need to increase reserves held against certain life products after the National Association of Insurance Commissioners (NAIC) approved new guidelines.

The guidelines relate to universal life products with secondary guarantees (ULSG) and term universal life (UL) products.

The revisions will see US insurers face demanding new reserving requirements on future ULSG and UL term products written on or after January 1, 2013. Reserves may also need to be raised on in-force policies.

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