Moody's Analytics is currently assessing the impact of the tax reform legislation, Bill H.R.1, on AXIS. The main changes affecting Life Insurance companies include:
Additional functionality will be needed to address the above changes. Knowledge Base article 2139 describes the relevant jobs that have been established so far and will be updated regularly going forward.
Although the changes will take effect in 2018, companies may want to consider the impact of the tax reserve treatment with respect to valuation and financial projections being performed for year-end 2017. Under certain circumstances, current functionality in AXIS can be used to model tax reserves that is the greater of:
Details and examples of the workaround can be found in Knowledge Base article 2140.
Over the next few months, we plan to publish additional guides describing the tax law changes and demonstrating new functionality to address these changes as it is released.
Please contact Client Support to discuss any questions you may have and on how to get the most out of AXIS.