Actuarial Notes

Exam CP-341

CP 341 – Advanced Life Reinsurance is an exam of the Society of Actuaries' Fellowship (FSA) pathway. Its syllabus covers the Mar 2027/Jul 2027 sittings.

Learning Objectives

Types of Reinsurance Arrangements and Methods (30–40%) The candidate will understand different types of traditional and advanced reinsurance transactions for life insurance.

  1. Describe basic terms and concepts related to reinsurance
  2. Understand the key aspects of automatic and facultative reinsurance
  3. Explain various methods and perform financial statement calculations of reinsurance transactions, including yearly renewable term, coinsurance, modified coinsurance, and funds withheld arrangements
  4. Explain reasons for using inforce reinsurance, approaches used for inforce reinsurance, and advantages and disadvantages of each approach
  5. Demonstrate knowledge of different forms of reinsurance for different products; specifically, PRTs/longevity swaps, annuity coinsurance, and life insurance yearly renewable term
  6. Describe and evaluate types of non-proportional reinsurance transactions
  7. Describe and evaluate types of reinsurance transactions for annuity contracts
  8. Understand the role of private equity involvement in the global reinsurance market and the use of offshore reinsurance

Readings:

  • CP341-100-25: The Essential Guide to Reinsurance (background only) (1a)
  • Life, Health & Annuity Reinsurance, Tiller, John E. and Tiller, Denise, 4th Edition, 2015
    • Ch. 1: Basic Terms and Concepts (1a)
    • Ch. 2: Automatic Reinsurance (1b, 1c)
    • Ch. 3: Facultative Reinsurance (1b, 1c)
    • Ch. 4: Basic Methods of Reinsurance (1b, 1c)
    • Ch. 5: Advanced Methods of Structures of Reinsurance (1b, 1c)
  • Pension Risk Transfer in Canada and the U.S., SOA Research Institute, Feb 2022 (1d-1g)
  • Life, Health & Annuity Reinsurance, Tiller, John E. and Tiller, Denise, 4th Edition, 2015 (1d-1g)
    • Ch. 7: Reinsurance of Inforce Risks
    • Ch. 17: Nonproportional Reinsurance
    • Ch. 19: Annuity Reinsurance
  • CP341-101-25: Capital Markets Bureau Primer - Private Equity (1h)
  • CP341-102-25: Number of Private Equity-Owned U.S. Insurers Remains Constant, But Total Investments Increase by Double Digits in 2023, NAIC Capital Markets Special Report (1h)
  • CP341-103-25: The Rising Tide of Offshore Life Reinsurance Raises Yellow Caution Flag (1h)
  • CP341-104-25: Private Equity and Life Insurers (1h)

Transferring Risk (20–35%) The candidate will understand the fundamentals of risk transfer between two counterparties.

  1. Describe the elements within reinsurance treaties
  2. Describe the elements and considerations of risk transfer between counterparties, and evaluate their impact on reinsurance agreement provisions
  3. Explain the considerations and process of managing insolvency of the ceding and assuming parties within a reinsurance transaction
  4. Explain the types, uses, and functions of captive reinsurance transactions

Readings:

  • Life, Health & Annuity Reinsurance, Tiller, John E. and Tiller, Denise, 4th Edition, 2015 (2a)
    • Ch. 8: The Reinsurance Treaty
  • Life Reinsurance Treaty Recapture Provisions, SOA, Jun 2020 (2a)
  • Life, Health & Annuity Reinsurance, Tiller, John E. and Tiller, Denise, 4th Edition, 2015 (2b)
    • Ch. 9: Risk Transfer Considerations
  • Risk Transfer Practice Note, AAA November 2022 (2b)
  • CP341-105-25: Lapse Risk and Capital Management Strategies: Back in the Spotlight, pp. 8-12 (2b)
  • Life, Health & Annuity Reinsurance, Tiller, John E. and Tiller, Denise, 4th Edition, 2015 (2c, 2d)
    • Ch. 10: Insolvency and Reinsurance
    • Ch. 20: Captives
  • CP341-106-25: Life and Annuity Reinsurance Sidecars: From Sidebar to Headline Topic (2c, 2d)
  • The Impact of BEAT on US Foreign Affiliated Reinsurance, Taxing Times, Dec 2020 (2c, 2d)

Key Accounting and Regulatory Considerations (25–40%) The candidate will understand regulatory frameworks for reinsurance transactions across US, Canadian, and global jurisdictions.

  1. Describe and evaluate elements of reinsurance requirements within the US regulatory framework
  2. Describe and evaluate elements of reinsurance requirements within the Canadian regulatory framework
  3. Understand US GAAP and US Stat requirements related to reinsurance
  4. Understand IFRS and OSFI requirements related to reinsurance
  5. Understand key international reinsurance regulatory frameworks, especially as they relate to the use of offshore reinsurance and private equity backed reinsurers.

Readings:

  • Life, Health & Annuity Reinsurance, Tiller, John E. and Tiller, Denise, 4th Edition, 2015
    • Ch. 11: U. S. Regulation of Reinsurance (3a)
    • Ch. 12: Canadian Regulation of Reinsurance (3b)
    • Ch. 13: U.S. Statutory Accounting (3c)
    • Ch. 14: U.S. GAAP Accounting (3c)
    • Ch. 15: U.S. Tax Considerations (3c)
  • CP341-107-25: NAIC Model Laws: Credit for Reinsurance Model Law (3c)
  • Impacts of AG48, Reinsurance News, November 2015 (3c)
  • CP341-109-25: Guide to Reciprocal Jurisdiction, Certified and Authorized Reinsurers, pp. 3-4 only (3c)
  • CP341-110-25: LICAT Guideline 2025, Chapter 10: Credit for Reinsurance (3d)
  • CP341-111-25: OSFI Guideline B3, Sound Reinsurance Practices and Procedures (3d)
  • Life, Health & Annuity Reinsurance, Tiller, John E. and Tiller, Denise, 4th Edition, 2015 (3d)
    • Ch. 16: Canadian Accounting and Tax Considerations
  • CP341-112-25: IFRS 17 Pocket Guide on Reinsurance Contracts Held (3e)
  • Fully Reinsured Business: Are the Financial Implications Neutralized, or Not?, The Financial Reporter, Nov 2024 (3e)
  • CP341-113-25: Supervision and Regulation of PE Insurers in Bermuda (3e)
  • CP341-114-25: The Bermuda Monetary Authority’s Approach to Private Equity-Owned (Re)insurers (3e)
  • CP341-115-25: Solvency II Equivalence FAQs (3e)
  • Asset-Intensive Reinsurance Ceded Offshore from U.S. Life Insurers (With Focus on Bermuda), AAA, Feb 2024 (3e)
  • CP341-108-25: The Heat is on for US Asset-Intensive Reinsurance Regulations (3e)

Reinsurance Administration and Management (0–10%) The candidate will understand and be able to explain practices for administering and managing reinsurance arrangements.

  1. Describe features and considerations related to reinsurance administration
  2. Describe and evaluate concepts related to the management of reinsurance
  3. Describe the concept of reinsurance counterparty credit risk and evaluate methods to reduce such risks.

Readings:

  • Life, Health & Annuity Reinsurance, Tiller, John E. and Tiller, Denise, 4th Edition, 2015 (4a)
    • Ch. 23: Reinsurance Administration
  • CP341-116-25: Modernizing Reinsurance Administration (4a)
  • Life, Health & Annuity Reinsurance, Tiller, John E. and Tiller, Denise, 4th Edition, 2015 (4b)
    • Ch. 24: Managing Reinsurance
  • CP341-117-25: Collateral Structures in the Bermuda Long-term Insurance Market (4c)
  • CP341-118-25: Management of Collateralised Reinsurance (4c)

Source Material

Source Material

  • CP341-100-25: The Essential Guide to Reinsurance (background only)
    • Outcomes 1a
  • Life, Health & Annuity Reinsurance, Tiller, John E. and Tiller, Denise, 4th Edition, 2015
    • Ch. 1: Basic Terms and Concepts (1a)
    • Ch. 2: Automatic Reinsurance (1b, 1c)
    • Ch. 3: Facultative Reinsurance (1b, 1c)
    • Ch. 4: Basic Methods of Reinsurance (1b, 1c)
    • Ch. 5: Advanced Methods of Structures of Reinsurance (1b, 1c)
    • Ch. 7: Reinsurance of Inforce Risks (1d-1g)
    • Ch. 17: Nonproportional Reinsurance (1d-1g)
    • Ch. 19: Annuity Reinsurance (1d-1g)
    • Ch. 8: The Reinsurance Treaty (2a)
    • Ch. 9: Risk Transfer Considerations (2b)
    • Ch. 10: Insolvency and Reinsurance (2c, 2d)
    • Ch. 20: Captives (2c, 2d)
    • Ch. 11: U. S. Regulation of Reinsurance (3a)
    • Ch. 12: Canadian Regulation of Reinsurance (3b)
    • Ch. 13: U.S. Statutory Accounting (3c)
    • Ch. 14: U.S. GAAP Accounting (3c)
    • Ch. 15: U.S. Tax Considerations (3c)
    • Ch. 16: Canadian Accounting and Tax Considerations (3d)
    • Ch. 23: Reinsurance Administration (4a)
    • Ch. 24: Managing Reinsurance (4b)
  • Pension Risk Transfer in Canada and the U.S., SOA Research Institute, Feb 2022
    • Outcomes 1d-1g
  • CP341-101-25: Capital Markets Bureau Primer - Private Equity
    • Outcomes 1h
  • CP341-102-25: Number of Private Equity-Owned U.S. Insurers Remains Constant, But Total Investments Increase by Double Digits in 2023, NAIC Capital Markets Special Report
    • Outcomes 1h
  • CP341-103-25: The Rising Tide of Offshore Life Reinsurance Raises Yellow Caution Flag
    • Outcomes 1h
  • CP341-104-25: Private Equity and Life Insurers
    • Outcomes 1h
  • Life Reinsurance Treaty Recapture Provisions, SOA, Jun 2020
    • Outcomes 2a
  • Risk Transfer Practice Note, AAA November 2022
    • Outcomes 2b
  • CP341-105-25: Lapse Risk and Capital Management Strategies: Back in the Spotlight, pp. 8-12
    • Outcomes 2b
  • CP341-106-25: Life and Annuity Reinsurance Sidecars: From Sidebar to Headline Topic
    • Outcomes 2c, 2d
  • The Impact of BEAT on US Foreign Affiliated Reinsurance, Taxing Times, Dec 2020
    • Outcomes 2c, 2d
  • CP341-107-25: NAIC Model Laws: Credit for Reinsurance Model Law
    • Outcomes 3c
  • Impacts of AG48, Reinsurance News, November 2015
    • Outcomes 3c
  • CP341-109-25: Guide to Reciprocal Jurisdiction, Certified and Authorized Reinsurers, pp. 3-4 only
    • Outcomes 3c
  • CP341-110-25: LICAT Guideline 2025, Chapter 10: Credit for Reinsurance
    • Outcomes 3d
  • CP341-111-25: OSFI Guideline B3, Sound Reinsurance Practices and Procedures
    • Outcomes 3d
  • CP341-112-25: IFRS 17 Pocket Guide on Reinsurance Contracts Held
    • Outcomes 3e
  • Fully Reinsured Business: Are the Financial Implications Neutralized, or Not?, The Financial Reporter, Nov 2024
    • Outcomes 3e
  • CP341-113-25: Supervision and Regulation of PE Insurers in Bermuda
    • Outcomes 3e
  • CP341-114-25: The Bermuda Monetary Authority’s Approach to Private Equity-Owned (Re)insurers
    • Outcomes 3e
  • CP341-115-25: Solvency II Equivalence FAQs
    • Outcomes 3e
  • Asset-Intensive Reinsurance Ceded Offshore from U.S. Life Insurers (With Focus on Bermuda), AAA, Feb 2024
    • Outcomes 3e
  • CP341-108-25: The Heat is on for US Asset-Intensive Reinsurance Regulations
    • Outcomes 3e
  • CP341-116-25: Modernizing Reinsurance Administration
    • Outcomes 4a
  • CP341-117-25: Collateral Structures in the Bermuda Long-term Insurance Market
    • Outcomes 4c
  • CP341-118-25: Management of Collateralised Reinsurance
    • Outcomes 4c