US Life Actuarial Outlook for 2026

Taylor Dever | Managing Director, USA at Acumen Group

Cayman’s NAIC equivalency remains a strategic priority as it looks to become a jurisdiction of choice for US reinsurance. While many start-ups consider Cayman in early planning conversations, Bermuda continues to be the primary option for newly established offshore entities.
Through AG-55 (effective year-end 2025 with reporting due 4/1/2026), US regulators are heightening scrutiny of cross-border reinsurance, especially around asset quality and capital efficiency.
VM-22 will continue to be a focus in 2026, and much still remains up in the air in terms of final impact on the industry and associated workload.
Expect continued growth in reinsurance transactions and the creation of affiliates/sidecars as US carriers face increased capital pressure and competition.

Return-to-office momentum continues for actuarial and finance functions. Most carriers have settled around a hybrid schedule (2-3 days per week in office), though some are pushing toward 4-5 days.
With growing demand for annuity products, related talent shortages and rising compensation requirements continue in annuity pricing/product development and ALM/asset modeling roles.
Increased reliance on global talent hubs (South Africa, India, Latin America) for lower-cost reporting, modeling, and operations support.
More actuaries are shifting toward strategic, cross-functional roles focused on product strategy, data analytics/automation, and investment management.

PE-backed platforms continue to play a major role in annuity and reinsurance growth, while also increasing regulator and stakeholder focus on asset risk, liquidity, and long-term policyholder protection.
PE ownership is accelerating innovation in ALM, alternative asset allocation, and capital optimization.
Expect continued use of sidecars and co-investment structures in 2026.

AI adoption is becoming clearer in terms of practical applications, though organizations are taking a conservative approach.
Core impact areas include valuation and reporting, model conversion/migration, and scenario/stress testing.

The need for retirement income is driving growth in annuity products, primarily FIAs and RILAs.
Increased focus on developing product features tied to market conditions to protect against volatility.
Competitive pressure is rising around areas outside core product features, including advisor tools, personalized illustrations, and distribution strategy.

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