Actuarial Notes

Life or Health Cash Flow Analysis

By Actuarial Standards Board · 2025 · ASOP No. 7

Study guide: Exam GH-201U

The Actuarial Standards Board's guidance to actuaries performing actuarial services with respect to the analysis of life or health cash flow risks. This standard (Doc. No. 219) was adopted in December 2025 and is effective for actuarial work performed on or after June 1, 2026.

On the syllabus

  • Exam GH-201U — Outcomes 1g; the standard excluding its Appendices.

Transmittal Memorandum

1 Purpose, Scope, Cross References, and Effective Date

  • 1.1 Purpose
  • 1.2 Scope
  • - Applies to actuaries performing actuarial services with respect to the analysis of life or health cash flow risks.

  • - An actuary reviewing a cash flow analysis performed by another party follows the guidance to the extent practicable within the scope of the assignment.
  • 1.3 Cross References
  • 1.4 Effective Date
  • - Effective for actuarial work performed on or after June 1, 2026.

2 Definitions

  • 2.1 Asset
  • 2.2 Cash Flow
  • 2.3 Cash Flow Analysis
  • 2.4 Cash Flow Risk
  • 2.5 Liability
  • 2.6 Organization
  • 2.7 Scenario

3 Analysis of Issues and Recommended Practices

  • 3.1 When to Perform a Cash Flow Analysis
  • 3.2 Scope of Cash Flow Analysis
  • - 3.2.1 Asset Considerations

  • - 3.2.2 Liability Considerations
  • 3.3 Type of the Cash Flow Analysis
  • 3.4 Projection of Asset Cash Flows
  • - 3.4.1 Asset Characteristics

  • - 3.4.2 Investment Strategy
  • 3.5 Projection of Liability Cash Flows
  • - 3.5.1 Liability Characteristics

  • - 3.5.2 Management Policies and Practices
  • 3.6 Scenarios
  • 3.7 Interim Values
  • 3.8 Reliance on Another Party
  • 3.9 Documentation

4 Communications and Disclosures

  • 4.1 Required Disclosures in an Actuarial Report
  • 4.2 Additional Disclosures in an Actuarial Report
  • 4.3 Confidential Information

Appendix 1 Background and Current Practices

  • Background
  • Current Practices

Appendix 2 Comments on the Exposure Draft and Responses

  • Appendix 2A: Property/Casualty Comments

Sources