PBR means new innovative product designs are possible without overly burdensome reserve requirements.

A new Mortality Table will result in premiums and policy values more reflective of increasing life expectancy. And, of course, a need to revise or replace policy forms.


Both were effective January 1, 2017.

Principle Based Reserving (PBR) is designed to more closely align reserves with the risk profile of an insurer. The reserve is computed using company-specific experience factors, such as mortality, policyholder behavior, and expenses with a minimum floor. While permitted January 1, 2017 there is a three-year phase-in period for the new law, so PBR can be deferred until January 1, 2020.

The 2001 CSO table was created based on experience from 1990-1995. Since that time, there has been a significant improvement in life expectancy. Additionally, a significant portion of the newly issued policies are now issued under preferred underwriting procedures. There is a three year transition period for the change to the 2017 CSO table. The new mortality table may be use in policies issued on or after January 1, 2017 and must be used for all policies issued after January 1, 2020.At this time there is only one version of the 2017 CSO Mortality Table that has been approved by the NAIC. Other versions may be approved in the future.


PBR and CSO related services offered by First Consulting include:

  • Product Development Consulting
    • Expert feedback on new ideas and concepts
    • Competition analysis and how your products fit in the market
    • Development of implementation strategy
  • Product Drafting/Filing
    • Re-tooling existing products and drafting new ones
    • Putting First Consulting’s state filing expertise to work for you to get your products to market faster, including the use of state expedited filing processes

With our Co-Sourcing philosophy, each of these services can be custom tailored to best fit your organization’s specific needs. Partner with an industry leader. Contact Us to learn more on how utilizing First Consulting’s experience can help your Company.