The spring and fall 2021 LFMU syllabus is now available on the SOA’s LFMU page. Overall, the changes were pretty light, but there were a few key changes described in more detail below. I expect all course updates to be finished by the first week of December, and there is already a wealth of material available to use in the course right now for anyone getting started now.
We are in the process of posting 2021 versions of our materials. Anything dated “2021” in the course is ready to use and will not need to be reprinted. You’ll find very clear instructions on how to use each item within the course.
New readings added to the 2021 syllabus:
- LFM-149-21: Insurance Contracts, PwC (Accounting Guide for Insurance Contracts), 2020, Sections 1.1 (pg. 1.2), 3.5 (pp. 3.20-3.30) & 5.1-5.10 (pp. 5.1-5.56) and Figures IG 2-1 (pp. 2.4-2.6) & IG 2-2 (pp.2.152.18)
- Implementation Considerations for VA Market Risk Benefits, Financial Reporter, Sep 2019
- LFMU GAAP Materials Flowchart, 2020
- LFMU PBR Materials Flowchart, 2020
LFM-149 more or less replaces LFM-142, which was dropped. Both are authored by the same firm (PwC) and have similar formatting and examples, but LFM-149 is more current and has some new details on TI. We had planned to make some CBT-oriented updates to our TI material anyway, and we will incorporate LFM-149 in those revisions.
The 2 flowcharts listed above are not really “readings,” per se. They are just 1-page diagrams that show the high level relationship of certain readings on syllabus. They don’t really contain any testable information themselves.
Modifications to SVILAC Ch. 24 (VM-21) on the 2021 syllabus
SVILAC Ch. 24 was on the syllabus in 2020, but it has been completely revised by the authors to reflect major revisions of VM-21 (PBR for VAs) that recently went into effect. If you have a print copy of the SVILAC book (volume 2), you should completely ignore that version of Ch. 24 going forward because the revised version of Ch. 24 is radically different. This update was necessary because the latest version of VM-21 is quite different from the original VM-21, which was essentially a clone of AG 43. (My sympathies to anyone who tries to maintain a textbook on accounting standards these days!)
We will be posting all new materials for the new revised of Ch. 24. If you purchased the SVILAC book through the Actuarial Bookstore or Actex, you should be able to view a digital copy of the revised Ch. 24 on their website, but there is no way to print or download it. Note that original LFMU syllabus used the word “addendum” to refer to the “revised” Ch. 24, but the word “addendum” does not actually appear anywhere on Actex’s website or in the revised Ch. 24. I confirmed with the SOA that the intention is indeed for you to use the “revised” digital version on Actex’s site (within your account if you have one) and to no longer use the version in the print copy of the book. I’m told that the official LFMU syllabus will soon be updated to clarify that.
Clear as mud? Don’t worry! We’ll walk you through it much more detail in the course materials.
Readings dropped from the 2021 syllabus
- LFM-142-20: In Depth – Detailing the New Accounting for Long-Duration Contracts of Insurers
- LFM-810-20: Practice Note on FAS 157 and 159, AAA, 2009
- Tailoring Global Capital Standards, The Actuary, 2017
- LFM-137-16: EVARAROC vs MCEV Earnings – A Unification Approach, Kraus, 2011
As noted earlier, LFM-142 was essentially replaced by the equally comprehensive LFM-149. LFM-810 and Tailoring Capital Standards were not very intensive readings, and don’t represent much of a “drop” in terms of content. LFM-137 was a pretty intensive paper that covered MCEV and related frameworks in great detail. This represents a major reduction in MCEV content on the syllabus.
The net page count on the syllabus dropped by roughly 80 pages as a result of these syllabus changes.