The National Association of Insurance Commissioners (NAIC) announced Thursday it has begun work to measure the financial impact of modernization efforts proposed for life insurance solvency regulation. These efforts would favor principles-based reserves over the static formulas traditionally used to calculate the reserves held to protect consumers’ financial interests in insurance products, the organization said. The NAIC has selected the actuarial consulting firm Towers Watson to work with state regulators and interested parties to calculate the impact of draft provisions on industry reserves and compare them to current methodologies. Work on the impact study is expected to be completed by March 31, and a report will be presented during the NAIC’s summer national meeting next year.