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  "documentTitle": "Scalar calibration For Life insurance business",
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  "authorName": "Oliver Wyman",
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  "notes": "The document outlines the methodology and context for updating health scalars used in NAIC GCC templates, referencing Oliver Wyman reports and historical data.",
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      "text": "A scalar of .89 is being proposed for use in the base capital ratio reported in the 12/31/2023 Group Capital Calculation (GCC) template replacing the .71 scalar currently included in the GCC template.",
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      "text": "Health scalar: .89",
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      "text": "Louis Felice, Consultant\nlouisfelice@gmail.com\n(518)424-1970",
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      "text": "An updated health scalar under the existing excess relative ratio (ERR) method is proposed herein for health insurers operating in Japan. In July 2023, NAIC adopted the ERR method as the sole scalar method in the GCC and upon review has also moved the scalars from “sensitivity analysis” to the base GCC Ratio calculation. Utilizing the same framework as the 2019/2020 health scalar development, a scalar of .89 is being proposed for use in the base capital ratio reported in the 12/31/2023 Group Capital Calculation (GCC) template replacing the .71 scalar currently included in the GCC template. Additionally, an initial projected scalar of .21 is being proposed under the capital regime change to occur in Japan effective April 1, 2025.",
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      "text": "The group capital calculation (GCC) template and instructions were formally adopted by the NAIC members in 2021 and are maintained each year by the NAIC. Scalars are included to compare insurance capital requirements of non-U.S. jurisdiction to U.S. Risk-based Capital (RBC) requirements. Prior to the 2023 version of the GCC template, the scalars were included in the template as part of “sensitivity analysis.” The current scalars for life insurers and property and casualty insurers were developed by the NAIC based on available public data from jurisdictions for reporting years 2015 and 2016. After consultation with NAIC staff, scalars for insurers writing a predominant amount of business in Japan’s Third Sector were presented to NAIC by AFLAC, assessed by NAIC staff, and introduced in 2020 as part of the development of the GCC.",
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      "text": "GROUP CAPITAL CALCULATION – JAPAN HEALTH SCALARS REFRESH REPORT TO NAIC",
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